£1.8 billion benefits through public sector productivity drive

  • New plans for public sector productivity will deliver up to £1.8 billion worth of benefits by 2029. 
  • Marks first step in plan to boost productivity, which the OBR say could save up to £20 billion a year by returning to pre-pandemic levels.  
  • Plan will free up thousands of police officer hours spent on admin, to instead help tackle crime, and expand the violence reduction unit model, stopping tens of thousands of violent offences

The Chancellor has today outlined plans to deliver up to £1.8 billion worth of benefits by 2029 by improving public sector productivity, including releasing police time for more frontline work. 

The Chancellor is promoting public sector productivity as an alternative to accepting an ever-increasing bill for public services as the government sticks to its plan to move on from the high spending and high tax approach that was necessary to get the UK through the shocks of Covid and Russia’s invasion of Ukraine.

A new focus is needed on the long-term decisions required to strengthen the economy and give people the opportunity to build a wealthier, more secure life for themselves and their family. 

Covering frontline services, the plan is designed to help public servants get back to doing what is most important: teaching our children, keeping us safe and treating us when we’re sick. 

Chancellor of the Exchequer Jeremy Hunt said: “We shouldn’t fall into the trap of thinking more spending buys us better public services. There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick. 

“That’s why our plan is about reaping the rewards of productivity, from faster access to MRIs for patients to hundreds of thousands of police hours freed up to attend burglaries or incidents of domestic abuse.” 

According to the Office for Budget Responsibility, returning to levels of productivity pre-pandemic could save £20 billion a year. This will help manage the size of the state in the long term, whilst maintaining public service quality and delivering savings for taxpayers.  

Today’s announcement marks the first step towards delivering these savings. Over 130,000 patients a year, including those waiting for cancer results, will receive their test results sooner as a result of over one hundred MRI scanners in England being upgraded with Artificial Intelligence designed to recognise patterns in scans through machine learning which will cut scan times by over a third.  

The government also plans to repeat the success of Violence Reduction Units which together with the Grip hot spot policing programme are estimated to have prevented 3,220 hospital admissions from violent injury and stopped 136,000 violent offences since 2019. We are committing £75 million over 3-years to expand the Violence Reduction Unit model across England and Wales, supporting a prevention first approach to serious violence.  

Plans are also underway to deliver on the Police Productivity Review which found that up to 38 million hours of officer time could be saved every year. If just a fraction of this time, 500,000 officer hours, was saved then police officers in England could attend an additional 250,000 incidents of domestic abuse or over 300,000 burglaries. 

To help get these police officers back to these frontline tasks, over £230 million will fund the rollout of time-saving technology including funding automated redaction of personal information such as name badges in shoplifting incidents, irrelevant faces from body worn cameras and number plates from video evidence.  

Interviewing witnesses and victims via video call to improve speed of service; piloting the use of drones as first responders in some police incidents like traffic accidents, to feed information back to first responders on the seriousness of the incident and the resource required; and using AI to triage 101 calls to get members of the public the right support faster.  

Today’s plan represents a total £800 million investment by 2029 to deliver £1.8 billion worth of productivity benefits.

This includes: 

  • Saving up to 55,000 hours a year of administrative time in the justice system through digitising jury bundles, new software to streamline parole decisions and provide probation officers with more robust data on whether offenders are safe to release. £170 million will be invested into the justice system to support this. 
  • Reducing Local Authority overspends on children’s social care places across England by making 200 additional child social care places available and reducing local government reliance on costly emergency places for children. £165m of funding will be used to create the additional places to help tackle last year’s overspend of £670 million. 
  • Saving £100m for the public purse by reducing fraud thanks to expanding the use of AI across government to make it easier to spot and catch fraudsters, funded by £34m. 
  • Accelerating delivery of DWP’s existing programme to modernise DWP services and move away from paper-based communications. This will be funded through a £17m commitment. 
  • Cutting the time it takes for planning officers to process applications by 30% through a new AI pilot. 
  • Ensuring more children with additional needs get the support they need to thrive through a £105m to fund an additional wave of 15 special free schools. 

Water savings flood in for Scottish public sector

SCOTLAND’S largest water retailer has saved the country’s public sector a record £2.85million over the course of the last year, taking total savings over three years to £6.4million.

Business Stream has supported public sector organisations across the country, including NHS Scotland, Scottish Fire and Rescue, Police Scotland and the Scottish Government with leak detection, water efficiency and smart monitoring services as part of a three-year contract.

As a result of the retailer’s activities, the sector has also saved more than 1.365 billion litres of water over the past year, equivalent to the volume of 546 Olympic swimming pools.

This in turn has delivered energy savings reducing 574,778 kg of carbon – comparable to removing 438 single passenger flights from Edinburgh to New York.

Jo Dow, Chief Executive of Business Stream, said: “We’re really pleased to have delivered significant savings for Scotland’s public sector again this year.

“Our experience in working with the sector has allowed us to develop a suite of services and solutions that are helping the sector to reduce costs, save time and generate environmental efficiencies. We’re looking forward to delivering further savings in the year ahead”.

Through constantly striving to improve efficiency and service, the 350-strong water retailer has increased public sector savings year-on-year, from £1.4 million in 2021 to £2.2 million in 2022.

As one of the largest water retailers in the UK, Business Stream was awarded the Scottish Government Public Sector Water and Waste Water Framework contract in early 2020. The contract, worth around £200 million over three years, also includes the Scottish Prison Service, universities and colleges and local authorities. In 2022, Business Stream was awarded an additional one-year extension to the contract, which is currently underway.

A spokesperson from the Scottish Procurement and Property Directorate utilities team, said: “Business Stream has continued to work with the public sector to identify water efficiency opportunities.

“This pro-active approach has reduced water consumption and provided financial savings for public sector customers of the Water and Waste Water Framework. Reducing cost and carbon impact is essential for supporting Scotland’s green economic recovery and helping us on our journey to a Net Zero Nation.”

The water retailer recently announced it had delivered £50,000 of funding to six public sector initiatives through its annual Public Sector Scotland (PSS) Water Efficiency Fund.

This year’s successful candidates of the Fund include a Heriot-Watt University initiative to install a water chiller unit to cool, condense and recirculate used water; the installation of modern, electronic low-flow taps at Glasgow Caledonian University; and the fitting of waterless urinals and aerator tap technology at Aberdeen’s Robert Gordon University.

Jo added: “The Water Efficiency Fund plays a key role in identifying and funding innovative ways to minimise water waste and generate efficiency savings. Our investment in these projects highlights our commitment to supporting Scotland’s public sector.”

Originally created in 2006 to offer best in class water services to businesses in Scotland, Business Stream later acquired the non-household customer base of Southern Water ahead of the planned opening of the English retail water market.

That market change in 2017 paved the way for 1.2 million businesses and public bodies in England to be able to choose their water supplier. In 2019 Business Stream acquired the customer base of its competitors Yorkshire Water Business Services (YWBS) and Three-Sixty, doubling its market share.

Business Stream has its HQ in Edinburgh, as well as a presence in Worthing, West Sussex and in Bradford, West Yorkshire. It is guided by its ambitious vision to make a positive difference to its customers, its people, the environment and local communities.

Since launching that vision in 2019, the retailer has introduced more than 30 initiatives, including a 20% water efficiency pledge to help customers reduce water usage. It has also invested in a tree-planting programme which has delivered an additional 10,000 trees in Scotland.

The savings success comes after Business Stream recently halved its carbon emissions in just one year, exceeding the retailer’s pledge to cut emissions by 20% over the same period.