News / Department tightens belt

The Department of Health will reduce its senior staff, implement a new business management system and cut its use of external consultants as part of an efficiency drive over the next two years.

In the Department of Health business plan 2009-11, the Department said its net administration budget (funds it can spend on its own functions) would fall from a 2007/08 outturn of £226m to £209m in 2010/11.

Emphasis will be given to benefiting from the new business management system, changing the grade mix to reduce the most senior levels in the Department and reducing support costs relative to the size of the Department.

It will also reduce its reliance on external consultants. A Commons health committee report told the Department in June it must ensure it gets value for money from its annual consultancy budget.

The plan includes key deliverables for 2009/10: achieving the 2007 comprehensive spending review savings of 3% and supporting the NHS to help deliver £1.45bn in recurrent savings.

The administration budget will be cut by £3m compared with 2008/09. The new business management system will generate efficiency and process savings of at least £1m a year by March 2011. And by reducing the number of separate business support functions by 20%, the Department aims to make savings of £500,000 a year by March 2011.

Some central programme budgets will also be cut. For example, Connecting for Health’s budget will be £83m lower in 2009/10. However, the budget for immunisation will be increased by £137m and there is a separate £66.6m pot for pandemic influenza.