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1 May 2012
The government has been called upon by a leading business organisation to open up public services to a wider range of providers.
Responding to a recent Public Accounts Committee report on the progress made by central government departments on their cost reduction efforts, the CBI has stated that the process of meeting these ambitious savings targets will be "long and difficult".
Matthew Fell, CBI director for Public Services, concurred that a good start has been made in terms of efficiency improvements and spending cuts, but added that transformative operational reforms may be needed to maintain this momentum.
"Opening up additional services to alternative providers - whether they are public sector, charities or businesses - could help to supply these services at a lower cost while delivering the desired outcomes," said Mr Fell.
The conclusion of the Public Accounts Committee's report stated that the Treasury needs to assume a core role in overseeing cost reduction strategies, to ensure that any decisions are taken with long-term goals in mind.