Public sector cost reduction


              In 2007-8 I started to draw attention to the need for the public sector to do more for less. I pointed out that spending was rising too quickly and not always being well spent.

              The costs of running my Parliamentary office and my expenses cost the taxpayer £105,917 in 2007-8. There were 23 MPs who did the job for less taxpayer cost, so I said I would cut my costs by 10% in 2008-9 and by another 10% in 2009-10. The two year cost reduction programme would take the total annual costs down to £85,792. I wished to show that you can cut costs in the public sector without damaging service levels.

              I have recently been sent the figures for 2009-10 by the Commons Authorities. They will publish the details in February 2011. The total costs I incurred in running the office and my own expenses came to £75,015 in 2009-10. That was £10,000 more off  than the target reductions and represents a decline of 29% compared to 2007-8. It would be more in inflation adjusted real terms, used in many public sector budgets.  £60,420 within the total was staff cost.

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One Comment

  1. alan jutson
    Posted December 8, 2010 at 5:04 pm | Permalink

    If only some others would follow your example.

    Just shows what can be done when a real attempt is made to reduce costs.

    I have to say I have not noticed any reduction in your service.

  • About John Redwood

    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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