The National Audit Office has cast doubt on the ability of five government departments to make reported savings of £2.8bn.
Today, the auditor has said that only 38% (around £1bn) of those savings are sustainable and will offer long-term value for money. It said there was uncertainty over 44% of those savings (around £1.2bn) and that 18% (around £500m) significantly overstate the level of savings.
The NAO said common problems include the use of unsuitable baseline figures for calculating savings, a lack of transparency over the reporting processes of arm’s length bodies, …

The Ministry of Defence is failing to raise as much money as it should through selling off property, the government’s spending watchdog warns today.
Defence Estates, which runs the MoD’s £20bn property portfolio, raised £3.4bn from disposals in the last decade. Yet the MoD has reduced personnel numbers three times faster than it has shrunk the size of its estate.
In today’s report, A Defence Estate of the Right Size to Meet Operational Needs, the National Audit Office says this raises “clear” questions about whether the MoD could reduce the estate further.
It …

The government’s management of its 25 private finance initiative-funded housing projects has been weak and under-resourced, with 21 running over-budget, spending watchdog the National Audit Office has said today.
In its report on PFI in Housing,  published today, the NAO criticises the Department for Communities and Local Government for allowing the majority of projects to suffer delays and require extra cash injections from the taxpayer.
Local authorities generally use the PFI modal in areas of high demand for housing, where the housing stock is in poor condition. The long-term contracts are meant …

The NHS must do more to force private contractors to share financial gains from hospitals funded by private finance initiative (PFI), the government spending watchdog has said.
Today, the National Audit Office published a report called the Performance and Management of Hospital PFI Contracts, which says the National Health Service (NHS) often fails to effectively manage its long-term deals with private contractors.
It says the NHS is losing out as a result, because big contractors managing more than one PFI  hospital are achieving economies of scale, and not sharing their winnings with …

The government has spent up to £1bn reshuffling Whitehall departments and quangos in the past five years, including £116m on property, the National Audit Office has revealed.
Today, the spending watchdog published a report examining value for money on a total of 92 central government reshuffles since May 2005.
The research, which analysed the 51 largest cases of reorganisation, says they cost a total of £200m a year, and often with little tangible benefit.
Eleven per cent of that figure relates to property and IT, while 41% of the costs were on staffing …

HM Revenue & Customs faces a financial backlash from a 20-year property  contract signed with Mapeley in 2001, according to a report from the Treasury Committee released today.
The report, called Administration and Expenditure of the Chancellor’s Departments 2008-09, says HMRC has failed to properly manage risks associated with the private finance initiative, in which it transferred 60% of its properties to Mapeley STEPS Contractor Limited in a bid to save £1.2bn by 2021.
It follows a damning verdict on the deal in December from the National Audit Office that said HMRC had …

What it is: The National Audit Office has published its latest report Preparations for the 2012 Olympic and Paralympic Games, about funding for the upcoming Olympics.
When it came out: 26 February 2010
Why it is important: The NAO says the government needs to replenish its contingency fund after taking £621m to fund the Olympic Village and Media Centre developments. It says that, while the project is currently on time and on budget, the contingency fund is needed to protect taxpayers from unexpected financial hurdles.
To read the full report click here: NAO report …

The government needs to bolster its Olympics contingency fund to protect taxpayers from unexpected bills, the National Audit Office has warned.
Today, the NAO has published its report Preparations for the London 2012 Olympic and Paralympic Games. It warned that government and the London Organising Committee for the Olympic and Paralympic Games (LOCOG) has depleted its contingency fund by taking £621m to fund the Olympic Village and the Media Centre.
Edward Leigh MP, chairman of the Committee of Public Accounts said that government and LOCOG were currently on time and on budget …

The BBC’s extension of Broadcasting House in London will end up £100m over budget and be four years late, according to the National Audit Office (NAO).
Today the NAO published a report called Renewing the BBC’s Estate, which criticised the BBC for failing to get value for money in delivering £2bn of major building projects. These were the redevelopment of Broadcasting House (pictured), the construction of Pacific Quay in Glasgow, and the planned move to Salford Quays.
The report said “weak governance” and a failure to spell out the original requirements …

The Foreign and Commonwealth Office’s £1.6bn overseas estate is wasting space and money due to weak management, according to the National Audit Office.
Today, the NAO published a report which criticises the FCO’s estates strategy for being thin on detailed property data and allowing total spend on projects since 2002 to go over-budget by £57m.
The study, called Adapting the Foreign and Commonwealth Office’s global estate to the modern world, says more than half of properties have unused office space or staff accommodation. This is despite the FCO’s obligation to offer a …