3.1 Achieving the 4.1% nominal VfM savings target for Treasury Group represents a challenge. Given the target requires cash releasing savings, the main measurement of VfM will be through expenditure savings in near-cash resource DEL for all members of Treasury Group and GSS. The VfM savings will be calculated as the difference between Treasury Group's actual expenditure (excluding non-recurrent restructuring costs) and its counterfactual, being the baseline costs adjusted for inflation. Calculating VfM savings in this manner demonstrates how the Group's expenditure is falling against its base costs and all of the savings made are cash releasing. Delivery against the Group's DSO outcomes and PSAs will ensure that the VfM programme is achieving the necessary savings without reducing the Group's performance.
3.2 The Treasury Group will publish its progress against its VfM programme on a six-monthly basis.