Move to cut States costs by £12m

Move to cut States costs by £12m

The panel of States Members and business leaders responsible for reviewing ‘value for money’ among States departments have proposed a change to the Business Plan that would see the rise in spending capped at 4.4 per cent next year, three per cent for the two years after, and 2.5 per cent for 2011 and 2012. The money would be taken proportionally from department budgets and Public Accounts Committee chairman Sarah Ferguson said that the amendment is in line with States policy agreed in 2004. She said that sticking to spending targets would save money and that the cost of States departments not keeping to targets would be increased tax bills for the public. In 2004 the States spent £9m more than expected, rising to £18m in 2005, and £24m last year.

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