Efficiency saving plans 'not delivered' by Jersey States

The report found the cost of external consultants hired to cut costs was in "excess of £1m"

An efficiency programme replaced by a rebalancing project has "not delivered" benefits envisaged in original plans, a watchdog has found.

The report from the Comptroller and Auditor General (C&AG) focussed on Efficiency Savings in Jersey's States.

It found the cost of external consultants brought in to help save funds was in "excess of £1m".

The report said arrangements to support the efficiency savings plans lacked "granularity and data integrity".

The report focussed on the establishment and operation of the Efficiencies Programme from 2019 to April 2020 and the Rebalancing Programme from April 2020 to May 2022.

C&AG said the government's definition of "efficiency" included cost recovery and increasing revenue, which it found were not "efficiency saving" measures when compared with "generally accepted best practice definitions".

'Little evidence'

It accepted the savings arrangements did not take place in 2020 due to the Covid-19 pandemic, but said the adopted approach lacked "current and desired" levels of services to enable its departments to assess their service target objectives.

The C&AG said there was an investment of £273,000 in the Zero Based Budgeting (ZBB) programme to support the Efficiencies Programme, but there was "little evidence of a cultural shift in identifying and delivering efficiencies" with the ZBB programme delivering budget realignment instead of efficiencies.

Budgets were reduced for 2021 and 2022 to reflect saving targets, including any additional savings required to replace non-recurring savings within the programme.

Target savings between 2020 and 2022 totalled £86.1m, and in August 2022 the predicted achievement against its cumulative budget for the end of 2022 was £76.8m.

C&AG Lynn Pamment said the Rebalancing Programme had "not delivered all of the recurring benefits envisaged in the original Efficiencies Plan".

She said the government's new plans would offer opportunity to refocus its money saving plans: "The Value for Money Programme currently being established as part of the Government Plan 2023-26 emphasises the opportunity to refocus on value for money.

"This consideration of economy, efficiency and effectiveness provides an opportunity to establish new programme governance arrangements and an appropriate supporting culture shift."

Treasury Minister, Deputy Ian Gorst said: "We are grateful for the independent review of the C&AG and will consider her recommendations for the Value for Money programme.

"While we acknowledge that there is still work to be done, it is important that we shift the organisation to a culture of value for money."

Follow BBC Jersey on Twitter and Facebook. Send your story ideas to [e-mail].