Government efficiency initiatives have probably never been so important.

As politicians try desperately to avoid discussing tax increases, reducing government spending is a key issue in the run up to the general election on 6 May.

The Conservatives have been espousing the findings of the Gershon Efficiency Review which was commissioned by a Labour administration, and Labour themselves have published the findings of the Smith Review.

The Smith Review is, in truth, little more than an update of the Lyons Review which in itself follows in the footsteps of a series of reviews going back to the 1970s promoting the decentralisation of the Civil Service.  OGC believe that 20,000 jobs have been relocated out of London following the Lyons Review.

How much of this would have happened in any case is uncertain, but Smith is now advocating a further 15,000 relocations within five years and longer term targets over a 10 year period.

This is fine in terms of spreading any economic benefits more widely but I do wonder how much money is, in fact, saved overall.  Upfront relocation costs are often so high as to wipe out the capitalised long term efficiency savings.

Redundancy payments within the Civil Service are huge and there may not be very much in the way of rental savings, particularly where London accommodation is held on historic leases with low rents and where there is likely to be a substantial dilapidations liability.

What I do find more interesting is the Total Place initiative, the report for which has just been published jointly by HM Treasury and the Department for Communities and Local Government.

The principle here is entirely sound.

Collaboration between those agencies providing services to the public could (in theory at least) generate considerable savings.  If this is coupled with a reduction in bureaucracy and ring-fenced budgets as is intended, then the overall benefit could be much greater still.

This would inevitably be a long term process and must be much more than the individual organisations simply agreeing to collaborate on a combined “one stop shop” but continuing to deliver their services in the same independent way.

Like all efficiencies, however, Total Place will only work if there is an overall willingness for it to succeed and a genuine spirit of co-operation.

• Budget 2010: The Ian Smith Review
• Southeast should benefit from 15,000 relocation plans, says Smith
• Smith to give clarity on civil service relocations
• Budget 2010: 15,000 more Whitehall jobs to move
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