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Govt wastes £326 million a year, say MPs

22/05/2008

Inefficient use of office space and accommodation costs shed £326 million from government coffers every year, the public accounts committee has said.

A report by the committee released this morning finds – ironically – the Treasury to be the most inefficient government department, spending £529 per square metre of office space and £12,041 per person.

"The Treasury should be setting an example to the other government departments, not bumping along in bottom place," said Edward Leigh, chairman of the committee.

"There is big room for improvement, given the markedly poor performance of government buildings in these respects compared with the private sector.

"The relocation of staff to cheaper areas outside London, while it can give rise to costs, can save money. The assumption that staff have to be in London should always be challenged."

Between 2005 and 2006 the public spent approximately £6 billion on the running costs of non-military estates, with the cost of central government's office property running up to £1 billion.

The report also reveals departments have very little idea as to the environmental performance of their buildings, with basic ignorance being shown about recycling schemes and energy usage.

Matthew Elliott, chief executive of the Taxpayers' Alliance, told politics.co.uk: "Given the vast size of the civil service, it is crucial that their offices are organised cost effectively.

"There is a lack of management experience, budget control and proper accountability at all levels, and taxpayers are paying the price."