Gershon Review
Encyclopedia
The Gershon Efficiency Review was a review of efficiency in the UK
public sector
conducted in 2004-5 by Sir Peter Gershon
.
Gordon Brown
and Tony Blair, then Chancellor of the Exchequer
and Prime Minister
respectively, appointed Peter Gershon, at that time the head of the Office of Government Commerce
, to review operations across all public services
and make recommendations regarding expenditure and efficiency. His report recommended making savings for Financial Year 2005-6, to be achieved through dramatic changes to the organisation of each government department and automating their work patterns, in order to 'release' resources from the public sector budget that was then approximately £520bn. These gross savings of £21.5bn were reported to have been achieved by 2007 and agreed as part of the Comprehensive Spending Review in 2004 and subsequent budget.
The effect of these objectives has been for all government departments to agree reductions on their long-term budgets, and then work out how to fulfill these challenging promises without crippling their existing obligations and service.
The approach encourages departments to meet the government's desire for 'Joined-up Government' that smooths out the delivery of services, and supports initiatives such as the use of a Common Systems Strategy as suggested in Sir David Varney
's Report and the Transformational Government strategy.
The timeframe also gives these organisations the challenge of investing in new services at a time when departmental headcount and budgets are being cut. In reality, the 'Gershon reviews' have been applied in waves across organisations.
In many instances the Treasury
has interpreted this release of resources to be a cost saving for reallocation outside to other projects or departments.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
conducted in 2004-5 by Sir Peter Gershon
Peter Gershon
Sir Peter Gershon KBE is a British business executive and former civil servant. He is chiefly known for conducting the Gershon Review in 2004/2005 which recommended savings across the UK's public services and for being an adviser to the Conservative Party during the run up to the 2010 General...
.
Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
and Tony Blair, then Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
and Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
respectively, appointed Peter Gershon, at that time the head of the Office of Government Commerce
Office of Government Commerce
The Office of Government Commerce is part of the Efficiency and Reform Group of the Cabinet Office, a department of the Government of the United Kingdom...
, to review operations across all public services
Public services
Public services is a term usually used to mean services provided by government to its citizens, either directly or by financing private provision of services. The term is associated with a social consensus that certain services should be available to all, regardless of income...
and make recommendations regarding expenditure and efficiency. His report recommended making savings for Financial Year 2005-6, to be achieved through dramatic changes to the organisation of each government department and automating their work patterns, in order to 'release' resources from the public sector budget that was then approximately £520bn. These gross savings of £21.5bn were reported to have been achieved by 2007 and agreed as part of the Comprehensive Spending Review in 2004 and subsequent budget.
The effect of these objectives has been for all government departments to agree reductions on their long-term budgets, and then work out how to fulfill these challenging promises without crippling their existing obligations and service.
Benefits
Certain functions were identified as offering good opportunities for savings through the use of ICT, such as tax collection and benefits payments. Aggregating and reorganising other functions offers the promise of savings in procurement, buildings and facilities.The approach encourages departments to meet the government's desire for 'Joined-up Government' that smooths out the delivery of services, and supports initiatives such as the use of a Common Systems Strategy as suggested in Sir David Varney
David Varney
Sir David Robert Varney was the chairman of HM Revenue and Customs from its establishment in April 2005 to the end of August 2006. David Varney was named as a recipient of a knighthood in the 2006 New Year's honours list...
's Report and the Transformational Government strategy.
Problems
However, not all government functions present such clear opportunities; those with a large proportion of physical assets or customer-facing staff have great challenges to offer the equivalent level of savings without suffering damage to their level of service.The timeframe also gives these organisations the challenge of investing in new services at a time when departmental headcount and budgets are being cut. In reality, the 'Gershon reviews' have been applied in waves across organisations.
In many instances the Treasury
Treasury
A treasury is either*A government department related to finance and taxation.*A place where currency or precious items is/are kept....
has interpreted this release of resources to be a cost saving for reallocation outside to other projects or departments.
Team Members
The team that supported Sir Peter Gershon in this work was drawn from a number of Government departments and consultancy organisations:- Simon King, HEDRA
- Anna Longman, HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
- Gillian Magee, PA Consulting GroupPA Consulting GroupPA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
- Sue Moon, Kent and Medway NHS Strategic Health AuthorityNHS Strategic Health AuthorityNHS strategic health authorities are part of the structure of the National Health Service in England. Each SHA is responsible for enacting the directives and implementing fiscal policy as dictated by the Department of Health at a regional level. In turn each SHA area contains various NHS trusts...
- Graham Murray, IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
- John Pendlebury-Green, PA Consulting GroupPA Consulting GroupPA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
- Sheila Pringle, Deloitte and Touche
- Neil Reeder, HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
- Bill Roots, Solace Enterprises
- Nathalie Ross, Nathalie Ross Consulting
- Tony Smith, IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
- Mike Binnington Deloitte and Touche
- James Bromiley National Audit OfficeNational Audit OfficeNational Audit Office can refer to:* Australian National Audit Office* National Audit Office * National Audit Office of the People's Republic of China* Swedish National Audit Office...
- Alan Collier OGCOGCOGC may refer to:* Oculogyric crisis, a dystonic reaction to certain drugs and/or medical conditions* Office of Government Commerce, a department of the government of the United Kingdom...
- Paul Connolly HEDRA
- Rob Devlen Hewlett Packard
- Zoe Elliot Cabinet OfficeCabinet OfficeThe Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
- Nicholas Fox IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
- Gerry Friell HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
- Paul Kirby Cabinet OfficeCabinet OfficeThe Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
- Liz Lawrence Cabinet OfficeCabinet OfficeThe Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
- John Hood PA Consulting
- Rebecca Khodr Cabinet OfficeCabinet OfficeThe Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
- Judi Stockwell, PA Consulting GroupPA Consulting GroupPA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
- Jenny Swan, Ofgem
- Emily Teller, Cabinet OfficeCabinet OfficeThe Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
- Graham Turnock, HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
- Bob Walding, Audit CommissionAudit CommissionThe Audit Commission is a public corporation in the United Kingdom.The Commission’s primary objective is to improve economy, efficiency and effectiveness in local government, housing and the health service, directly through the audit and inspection process and also through value for money...
- Graham Walker, Office of the e-EnvoyOffice of the e-EnvoyThe Office of the e-Envoy was set up by Tony Blair in 1999 and was replaced by the E-Government Unit in September 2004. A few senior members of the office joined gov3 an ICT consultancy firm for governments.The first e-Envoy was Alex Allan...
- Martin Walker, Hewlett Packard
- Andrew Ward, PA Consulting GroupPA Consulting GroupPA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
- Alice Webb, PA Consulting GroupPA Consulting GroupPA Consulting Group is a global management and IT consulting and technology and innovation organisation with specialist expertise across the defence, energy, financial services, government and public services, healthcare, automotive and consumer goods, telecoms, and transport and logistics sectors...
- David Williams, Insource Solutions
- Marian Wilson, Inland RevenueInland RevenueThe Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty...
- Nadia Zahawi, HEDRA