The key driver for efficiency savings is the RPI-3 per cent target for cost reductions between 2005-06 and 2009-10. This commits us to savings of over £1 million per year. We have so far beaten our target and as a result we reduced the licence fees payable in 2006-07 and 2007-08 by an additional £2.9 million and £0.6 million respectively, or nearly 10 per cent of our allowed budget.
The RPI-3 cost control regime has led to improved financial discipline in the period to date and we expect to improve considerably on the targeted savings of £5 million. These savings will mainly be achieved through:
- continuing to reduce our dependence on external consultants,
- seeking greater efficiencies in the use of office space,
- exploring further the idea of shared services with other government departments,
- increasing the energy efficiency of our offices,
- more efficient purchasing via better contract management and negotiation, and
- reducing headcount, in part through more prioritisation and through continuing to improve the organisation of work flows.
In 2008-09 we will begin to consider what internal cost control arrangements would be appropriate for 2010-11 and beyond. As we continue through the remainder of this cost control period it should be noted that some of our work will be in response to unplanned events or requests, such as those made by Government, which by their nature cannot be fully accounted for in our formal planning and may therefore require us to re-prioritise our work.