Jacob Rees-Mogg’s Whitehall efficiency program ‘saved almost £4billion’

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He wrote: “For the British state to weather the next storm of inflation and support the public adequately, waste and inefficiency must be reduced.

“Working with civil servants and fellow ministers in the Cabinet Office this year, I have been able to deliver billions of pounds of savings to the taxpayer. By removing unnecessary inefficiencies and waste, this will help fight inflation, which has reached extraordinary heights.

He added: “All taxes are ultimately paid by individuals as everyday prices, whether it is green levies on energy bills, corporation tax or national insurance, which affect economic growth and overall inflation.

“While I support lowering taxes to unleash economic growth, we need to eradicate waste so that public money is spent as efficiently as possible. We will not reduce inflation without a lean and efficient state.

Government waste ‘risks increasing inflation’

Mr Rees-Mogg warned that government waste increases public debt, which risks increasing inflation.

“With tight spending controls and a focus on reducing fraud, the Cabinet Office has been able to save over £3.5billion for the taxpayer in 2020 to 2021. This needs to go much further.

“Earlier this year the Cabinet Committee on Efficiency and Value for Money was set up with a mission to save the taxpayer more than £5.5billion every year. This was sadly underused by the former chancellor, but it must be an essential tool in the next prime minister’s arsenal to reduce waste and inflation.

He said there was a certain amount of “kicking and shouting” from the Treasury over its fraud crackdown plans.

Mr Rees-Mogg wrote: “The next Prime Minister will face great challenges from day one in Downing Street. Reducing inflation, cutting taxes and growing the economy must be its top priorities.

“None of these are deliverable without the political will to make Whitehall as lean and efficient as possible. The savings I have described should be a mission for all ministers in the new government, from the Chancellor of the Exchequer to the most recently appointed Under-Secretary.

“Reducing taxes must go hand in hand with reducing the bureaucratic burden on Whitehall, only then will we reduce inflation and bring the economy back to growth.”


Cutting taxes must go hand in hand with cutting Whitehall’s bureaucratic burden to bring inflation down

By Jacob Rees-Mogg

History will remember favorably George Osborne’s time as chancellor. He had a long-term economic plan and recognized that taxpayers’ money should be used with care. It was not primarily about cutting expenses, but about using the money to its best advantage. It was through his efforts that the nation was able to afford the £400billion of support offered during the pandemic.

For the British state to weather the next storm of inflation and support the public adequately, waste and inefficiency must be reduced. By working this year with civil servants and fellow ministers in the Cabinet Office, I have been able to achieve billions of pounds in savings for the taxpayer. By removing inefficiencies and unnecessary waste, this will help fight inflation, which has reached extraordinary heights.

When I was appointed Minister for Brexit Opportunities and Government Efficiency, I said the two adjoining responsibilities were one and the same. Our departure from the European Union requires a rethinking of the British state. It means going beyond ministers looking for budget cuts and haircuts and asking whether the state should perform certain functions.

These savings will ensure that the taxpayer can afford to help the public with soaring energy costs this year and therefore help reduce inflation. As a supporter of Liz Truss to become Prime Minister, I am a strong advocate of the benefits of tax cuts for the British economy and consumer. The economy must grow both to pay for public services and to reduce the tax burden.

“We will not reduce inflation without a lean and efficient state”

All taxes are ultimately paid by individuals as everyday prices, whether it is green levies on energy bills, corporation tax or national insurance, which affect economic growth and the economy. global inflation. While I support lowering taxes to unleash economic growth, we need to eradicate waste so that public money is spent as efficiently as possible. We will not reduce inflation without a lean and efficient state.

The Trade Frontier is an example of how government efficiency dampens inflation. In the spring, thanks to the support of the Prime Minister and Liz Truss, the government suspended costly physical checks on goods from the European Union to cope with the rising cost of food. As well as saving border officers time and resources, the measure has also saved businesses in the wider economy at least £1 billion in avoided costs, avoiding shortages of goods and delays in already strained supply chains.

Thanks to freedoms outside the EU, we are going further by reducing tariffs and digitizing our trade border with the One Stop Shop next year, which will help businesses trade across our border seamlessly, reducing costs and reducing inflation. Data crossing our borders will help ministers achieve new efficiencies and potentially save taxpayers billions of pounds by avoiding building costly infrastructure or automating existing processes. In return, we will be able to reduce the tax burden on Britons without increasing inflation as the economy grows and the state functions more efficiently.

Maintaining government effectiveness requires constant vigilance to prevent departments from wasting taxpayers’ money, which in turn increases public debt and risks increasing inflation. With tight spending controls and a focus on reducing fraud, the Cabinet Office has been able to save over £3.5billion for the taxpayer in 2020 to 2021. It needs to go much further. Earlier this year, the Cabinet Committee on Efficiency and Value for Money was set up with a mission to save the taxpayer more than £5.5billion every year. This was sadly underused by the former Chancellor, but it must be a key tool in the next Prime Minister’s arsenal to reduce waste and inflation.

“A lot of kicking and screaming” from the Treasury

Surprisingly, there was a lot of kicking and shouting from some quarters of the Treasury against the Public Sector Fraud Authority, which was eventually set up with strong powers to recover taxpayers’ money lost to fraud. I doubt this would have happened had it not been for the dramatic resignation of Lord Agnew which prompted the Treasury to act. The government will release full information in September on the extent of fraud under the pandemic rebound loan program and implement a program to recover billions lost to fraud, which should go a long way to restoring the taxpayers’ confidence in the government’s management of their money.

Governments always face the pressures of public affairs, but that is not an argument for more civil servants. By completing the reduction to 2016 levels, by some 91,000 civil servants, 2025 will save the taxpayer over £3billion and restore our bureaucracy to a manageable size now that the pandemic has passed. The Cabinet Office is leading by example with a 25% reduction in its workforce over the next three years, which will provide an opportunity for significant reform as well as cost savings.

This goes hand in hand with the optimization of government assets which saves the taxpayer around £6.5billion through a combination of consolidation of government property, more commercial management of leases and more efficient management of buildings . As figures show more public servants returning to office full-time, taxpayers will want to see their money spent on a hard-working public service in office.

The next Prime Minister will face great challenges from day one in Downing Street. Reducing inflation, cutting taxes and growing the economy must be its top priorities. None of these are deliverable without the political will to make Whitehall as lean and efficient as possible. The savings I have described should be a mission for all ministers in the new government, from the Chancellor of the Exchequer to the most recently appointed Under-Secretary. Cutting taxes must go hand in hand with reducing the bureaucratic burden in Whitehall, only then will we reduce inflation and bring the economy back to growth.

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