1.7 Over the CSR period, the Treasury Group will deliver £30 million of Value for Money (VfM) savings, equivalent to 4.1% per annum. Delivering these savings will mean becoming a smaller and more efficient Group, focused on priority areas with the right systems in place to support and enable staff to deliver its objectives.
1.8 The VfM programme is based on a number of zero-based reviews that looked at specific areas of activity to determine:
• Where a good fit exists with the Group's vision and DSOs;
• The link between expenditure and outcomes;
• Where trends show rising baselines that will continue into the CSR period unless modified; and
• The scope for the extension, or introduction, of co-financing.
1.9 In headline terms the Group's VfM programme will:
• Establish a streamlined, cost conscious Treasury Group for 2011 by:
• Setting a strong challenge across HM Treasury by restructuring its directorates to release savings and manage down its headcount;
• Building on the innovative Group Shared Services (GSS) initiative which brings together corporate services for HM Treasury and Office of Government Commerce (OGC);
• Rationalising the use of buildings to maximise efficiency from the estate and release surplus properties;
• Revising the objectives for OGC to enable a material reduction in its headcount and recognising a higher skilled workforce; and
• Refining UK Debt Management Office's (DMO's) procedures to increase automation and reduce support costs.
• Focus savings on the Group's administration budgets, as some of the programme budgets are demand led, so total programme costs are likely to increase over the CSR2007 period.