Today the UK National Audit Office (NAO) has revealed the figures.The planned improvements were to include structures for pooled resources. These usually make much more sense. However it seems that the plans fell at the first hurdle. Part of the problem seems to have been in the management structure. With no clear roles defined it would seem that it was a case of every man or woman for themselves.
As the BBC have reported, "The changes date back to 2004, when Tony Blair's Labour government promised to set up cost-saving centres to save £159m by sharing "back-office" functions such as information technology, personnel and procurement between departments". Sounds good on paper and in theory so what has gone wrong?
Well according to NAO the initial start-up costs had been put at £900m but, by 2011, these had increased to £1.4bn. WHAT! It is worth mentioning that the current UK coalition government took up office in 2010. Obviously instead of saving money the British taxpayer was once again out of pocket.Comparisons to such proposed changes show that in those companies cost saving are made within a few short years. You can read a full report here.The report of this dreadful waste of money make this blogger think about several pertinent considerations such as:
- If successive UK governments are unable to resolve their own budget inefficiencies how on earth can they be expected to solve the nation's financial woes?
- Have some of the problems occurred because different political parties will not work together for a common end.
- The Coalition has been in power for Two years now and so they can hardly blame today's news on the previous government.