Spending Review 2025: Departmental Efficiency Plans

June 2025

Spending Review 2025Departmental Efficiency
Plans

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Contents
Chapter 1 Efficiencies at Spending Review 2025 4
Chapter 2 Departmental Efficiency Plans 7

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Chapter 1
Efficiencies at Spending
Review 2025
1.1 Autumn Budget 2024 announced the Office for Value for Money (OVfM)
would, amongst other things, assess where and how to improve efficiency across
government to inform decisions at the Spending Review (SR).
1.2 The OVfM’s approach has been guided by three principles, which together
will deliver a sustainable outcome. First, it has placed greater focus on improving
outcomes not just reducing costs. It has achieved this by clearly distinguishing
between technical efficiencies (delivering more output for the same input, or the
same output for less input) and stopping activities (reducing outputs). This is in
line with the Government Efficiency Framework definition of a technical
efficiency. Second, it has aimed to increase confidence in the deliverability of
efficiencies, by working with departments to develop bespoke targets
underpinned by credible plans. Third, it has supported greater transparency by
publishing departments’ targets and plans, allowing external scrutiny and public
accountability.
1.3 The OVfM and its Chair have worked closely with all departments to agree
bespoke technical efficiency targets and delivery plans for day-to-day budgets.
This exercise has harnessed cross-government expertise, including the following
Cabinet Office functions: the Government Commercial Function, the Office of
Government Property, and the Government Grants Management Function. These
functions will continue to support departments as they deliver their plans. The
Department for Science, Innovation and Technology (DSIT), as the digital centre of
government, has provided guidance and support to departments on their plans
for delivering efficiencies through digital transformation.
1.4 The departmental delivery plans have identified total annual efficiency gains
of almost £14bn by 2028-29, the final year of the SR period, through a combination
of improved outcomes and reduced cost. This exceeds the initial expectation of
£12bn efficiencies by 2028-29, measured against 2025-26 planned day-to-day
budgets. Most departments developed efficiency plans to deliver at least 3%
efficiency gains by 2028-29, with some delivering over 8% (see table 1.1). Those
departments that have not yet developed plans to deliver 3% efficiencies by 2028-
29 will continue to identify opportunities over the coming period.
1.5 This exercise only included programmes to deliver efficiencies where the
benefits outweighed the costs of implementation over the SR period. Official
Development Assistance (ODA) was excluded from the process, given recent

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significant changes to the UK’s ODA budget. Following a refresh of the UK’s
development offer the Foreign, Commonwealth and Development Office will
work with other departments to explore how best to drive efficiency across the
ODA budget.
1.6 This document includes a summary of the efficiency targets and plans for
each department, to deliver greater transparency, allow external scrutiny, and
support the sharing of best practice. The publication of the plans will also ensure
efficiencies continue to be a focus for departments and their arm’s-length bodies
(ALBs) throughout this SR period.
1.7 Many departments have found efficiencies against common themes,
including:
a. digital and Artificial Intelligence (AI) – DSIT judge these plans to be credible
and deliverable in aggregate over the SR period, provided departments
continue to prioritise digital investment, particularly in foundational
programmes;
b. workforce – making the Civil Service more efficient and effective is a key
mission for the government. The Government People Group will support
departments through workforce reform and funded exits; and
c. estates – the Office of Government Property is supporting departments to
streamline the government estate, including by reducing the size of the
London estate and making better use of government owned land.
1.8 In line with a recommendation from the OVfM, the government has
committed to an expectation of at least 1% technical efficiencies for all
departments in all future years. To support this commitment, the government will
publish bespoke departmental efficiency targets and plans biennially, embedding
a culture of continuous improvement backed up by greater confidence in
delivery.

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Table 1.1: Net efficiency gains vs 2025-26 planned Resource Departmental
Expenditure Limits (RDEL) excluding depreciation and Official Development
Assistance (ODA)
2025-26 planned
RDEL1 (£m)
2026-27
(£m)
2027-28
(£m)
2028-29
(£m)
2028-29
(%)
Health and Social Care 201,855 2841 5786 9071 4.5%
Education (excluding core schools) 29,277 76 166 248 0.8%2
Home Office 18,201 166 335 533 2.9%
Justice 11,865 119 238 356 3.0%
Defence 38,934 563 826 905 2.3%
Foreign, Commonwealth and
Development Office
1,992 25 71 85 4.3%
Housing, Communities, and Local
Government
4,093 42 44 50 1.2%3
Culture, Media and Sport 1,538 29 43 52 3.4%
Science, Innovation and Technology 560 9 17 32 5.6%
Transport 8,281 313 491 663 8.0%
Energy Security and Net Zero 1,813 30 82 157 8.7%
Environment and Rural Affairs 4,622 51 100 144 3.1%
Business and Trade 1,789 25 54 75 4.2%
Work and Pensions 10,223 161 207 312 3.0%
HM Revenue and Customs 5,906 139 403 773 13.1%
HM Treasury 413 5 8 13 3.0%
Cabinet Office 834 20 29 40 4.7%
Small Departments 5,688 144 222 296 5.2%
Total efficiencies net of
investment4 347,886 4,758 9,123 13,804 4.0%
1 Figures for 2025-26 include Spring Statement 2025 plans (excluding the Reform and Innovation Fund, the
Transformation Fund and ODA), plus Machinery of Government changes .
2 DfE plans to spend £7.8bn RDEL on non-frontline services in 2025-26. Total efficiencies net of
investment excluding frontline services is 3.2% in 2028-29.
3 Taking into account the impact of MHCLG projects and programmes on local government, there
will also be efficiency gains for local government who will then be able to recycle these gains into
frontline services. These are not quantified in this document.
4 Throughout this document, efficiencies are reported net of investment, unless specified
otherwise.

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Chapter 2
Departmental Efficiency
Plans

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Department of Health and Social Care
Table 2.1: Net efficiency gains vs 2025-26 planned RDEL excluding depreciation
and ODA
£ million 2026-27 2027-28 2028-29
NHS Productivity Plan 2800 5700 8950
Of which: electives 950 1900 2950
Of which: urgent and emergency care,
Community Health and Better Care Fund
950 1900 2900
Of which: mental health 300 650 950
Of which: primary care 200 350 550
Of which: other services 400 900 1600
Non-NHS arm’s-length bodies 41 86 121
Total efficiencies net of investment1 2841 5786 9071
Total efficiencies net of investment (%) 1.4% 2.9% 4.5%
1 Gross efficiencies are omitted as delivery detail of the productivity plan is still being refined.
2.1 The Department of Health and Social Care (DHSC) Group supports
ministers in leading the nation’s health and social care systems to help people live
more independent, healthier lives for longer. The Group comprises 13 arm’s-length
bodies (ALBs), including NHS England, and plans to spend £201.9bn RDEL
(excluding ODA) in 2025-26, the baseline year against which efficiency gains are
calculated. Of this, £195.6bn (around 97%) has been allocated to the NHS.
2.2 DHSC will deliver efficiency gains of £9.1bn per year by 2028-29 through:
• delivering the NHS productivity plan to achieve 2% annual productivity growth
over the Spending Review (SR) period, leading to £8.95bn of annual efficiencies
by 2028-29. This represents a substantial increase on NHS productivity growth
before the Covid pandemic (0.6% a year between 1995-96 and 2018-19), enabling
the NHS to treat patients more quickly and effectively; and
• initiatives in the department and its other 12 ALBs, including IT modernisation,
shared services improvements and counter-fraud activity, leading to £121m of
annual efficiencies by 2028-29.
NHS Productivity Plan
2.3 The NHS Productivity Plan is backed by a nearly 50% increase to NHS
technology and transformation spend since 2025-26, with a total investment of up
to £10bn by 2028-29. The £8.95bn of annual efficiencies this will unlock by 2028-29
will be reinvested back into the NHS and support the transformation in the 10
Year Health Plan.
2.4 As set out in Table 2.1, the plan will deliver efficiencies across all healthcare
services (electives; urgent and emergency care and community health; mental
health; primary care and other services), primarily through the combined impact
of operational and clinical improvements, technology and digital transformation
and workforce initiatives, which are described more fully below. The department
has more detailed plans for how these initiatives will deliver the efficiencies across
each service.

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• Operational and clinical improvements: improving the operational and clinical
productivity of NHS services, specifically in elective care and urgent and
emergency care (UEC). The ‘Reforming elective care for patients’ plan
published in January sets out detailed proposals for treating patients in the
most cost-effective way, such as: optimising surgical pathways and theatre
productivity by using surgical hubs and perioperative care efficiently;
optimising referrals; expanding the role of patient-initiated follow-ups and
remote monitoring; and following the NHS’s Evidence-Based Interventions
programme to reduce unnecessary interventions. The NHS will improve UEC
productivity through, for example: expanding coverage of Urgent Treatment
Centres and provision of Same Day Emergency Care services to ensure
patients are treated in the most appropriate and cost-effective setting;
proactively meeting the needs of people who attend emergency departments;
improving in-hospital processes to support patient flow; and reducing
avoidable conveyances (transports) by ambulance services with subsequent
lower admissions.
• Technology and digital transformation: the NHS will invest in core technology
infrastructure to optimise the use of clinical and administrative time and avoid
delays caused by outdated technology. The NHS will also deliver a single
patient record, so patients are in control of their data and clinical staff can see
test results and medical histories, reducing administrative burden involved in
accessing records, duplication and improving decision-making. The NHS App
will be at the heart of a modern NHS, expanding the use of digital triage and
navigation, making more information available to patients and empowering
them to access appropriate care settings and treatments. The NHS will also
expand the use of the Federated Data Platform, so staff have live data on their
clinical area, including patient progress and surgery lists. This will improve the
management of resources and performance across the NHS. The NHS will also
invest in the adoption of new technologies to reform patient pathways,
improve patient experience and enable care in lower-cost settings.
• Workforce: the NHS will reduce the need for temporary staff by reducing
sickness absence and reforming temporary staffing policies. It will deliver this
through setting limits on agency spend, including eliminating agency usage
for entry level roles – building on a £1bn reduction in agency spend in 2024-25.
The demand for temporary staff will be reduced by reducing sickness absence
rates and improving retention.
2.5 The NHS productivity plan also intends to drive out the financial benefits of
shifting care upstream through prevention and earlier intervention and delivering
more services in primary care and community settings to improve outcomes and
reduce reliance on more intensive hospital care. Under the plans, NHS England is
also driving improvements in wider efficiency and value for money year-on-year.
This includes the more effective use of medicines, commercial levers, automation
and shared corporate services to reduce costs and maximise value for money for
the taxpayer.

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DHSC and other ALB efficiencies
2.6 DHSC will also deliver efficiencies from core departmental and other ALB
budgets, including in:
• DHSC – through improved IT systems and use of digital technology to
streamline workflows;
• NHS Counter Fraud Authority – through reducing the risk of fraud in the New
Hospital Programme, primary care and secondary care, as well as efficiencies
from estate rationalisation and in digital contracts;
• NHS Resolution (which provides expertise to the NHS, including resolving
concerns and disputes fairly) – through an improvement programme, under
which claims processing will be brought back in-house where that provides
better value for money; and
• UK Health Security Agency – through the use of an enterprise data and
analytics platform, greater automation and process reforms.
Future efficiency plans
2.7 DHSC and the NHS are developing and implementing plans to integrate
NHS England into a smaller, leaner and more agile future central department,
alongside restructuring the NHS’s Integrated Care Systems and Commissioning
Support Units and reducing corporate costs in NHS providers. These reforms will
transform the way the centre and the NHS works, prioritise resources for the front
line and deliver very significant efficiency savings from 2025-26 and across the SR
period.

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Department for Education
Table 2.2: Net efficiency gains vs 2025-26 planned RDEL excluding core
schools, depreciation and ODA
£ million 2026-27 2027-28 2028-29
Non-frontline efficiencies 73 147 220
Corporate initiatives 3 19 28
Total efficiencies net of investment 76 166 248
Total efficiencies net of investment (%) 0.3% 0.6% 0.8%1
Memo: total gross efficiencies 76 166 248
Memo: total gross efficiencies (%) 0.3% 0.6% 0.8%
1 DfE plans to spend £7.8bn RDEL on non-frontline services in 2025-26. Total efficiencies net of
investment (%) excluding frontline services is 3.2% in 2028-29.
2.8 The Department for Education (DfE) is responsible for children’s services
and education, including early years, schools, further and higher education policy,
apprenticeships and wider skills in England. It works with 17 public bodies and
agencies to raise life chances for all as part of the government’s Opportunity
Mission – breaking the link between background and success.
2.9 Over 95% of DfE’s budget (excluding student loans) is provided to frontline
providers, who have considerable autonomy over how they operate. DfE plans to
spend £29bn RDEL in 2025-26 (excluding core schools and ODA), the baseline year
against which efficiency gains are calculated. DfE plans to spend £7.8bn RDEL on
non-frontline services in 2025-26. This excludes budgets which are demand-led
and/or provided directly to frontline providers and local authorities, such as early
years entitlements, schools, apprenticeships and Further Education. The
department will deliver £248m of efficiencies per year by 2028-29. DfE is
supporting frontline providers in getting maximum value from every pound of
public money for delivery of public services.
2.10 DfE will deliver efficiency by 2028-29 through:
• efficiencies on non-frontline budgets – driving further efficiencies through
contracting and procurement, in-housing services and using digital
technology more effectively; and
• corporate initiatives – improving DfE’s capability and operations, including a
strategic workforce plan and continued investment in data and digital
capabilities.
Non-frontline efficiencies
2.11 DfE will deliver 3% (£220m) of efficiencies on planned 2025-26 non-frontline
budgets by the end of the SR period. DfE will review detailed allocations after the
SR, considering where it can drive further efficiencies through contracting and
procurement.
2.12 The DfE commercial function is targeting efficiencies on non-frontline
budgets, with £200m of opportunities already identified, with the expectation

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that more will emerge through the year. This will be achieved by aggregating
contracts, using the Crown Commercial Service to leverage economies of scale
across the Civil Service, renegotiating contract terms and active contract and
grant management. The department’s Digital, Data and Technology strategy is
continuing to transform business processes, including in-housing of contracted
digital services. This will generate £20m of efficiencies in 2028-29.
Corporate initiatives
2.13 DfE will become smaller and more agile over the SR period through a
strategic workforce plan to improve its capability and operations. This will include
moving to more flexible resourcing, greater use of AI and digital tools, conversion
of managed services in its digital, data and technology function to permanent civil
servants, and reviewing all non-staff expenditure to identify areas for efficiencies.
This will deliver £28m of efficiencies in 2028-29.
Supporting frontline providers
2.14 DfE will continue to support frontline providers in getting maximum value
from every pound of public money for delivery of essential public services.
2.15 Children’s Social Care – an increasing proportion of local government
spending on children and young people’s services is going towards solving
preventable crisis. The investment in children’s social care announced in the SR
will enable DfE and MHCLG to deliver an extensive reform programme that will
support thousands of children and their families, with more focus on preventative
activity which avoids a family's needs escalating, reducing costs and demand in
the system. It will allow government to implement legislation in the Children’s
Wellbeing and Schools Bill, which addresses the broken care market and helps
local authorities and other agencies to intervene earlier and more effectively to
support children. DfE will improve transparency, reduce the risk of sudden
provider exit, and introduce profit caps if necessary to stop profiteering in
residential care.
2.16 Mainstream Schools – the SR announces the core schools budget will rise to
£69.5bn by 2028-29. The government has accepted the School Teachers' Review
Body recommendations for a 4% pay award for teachers for 2025-26. DfE will be
supporting schools to find the first one percentage point of the teacher and
support staff pay awards through improved productivity and smarter spending.
Schools and trusts have autonomy over their own spending and are best placed
to decide how their budgets should be spent to best support the needs of their
pupils. DfE will work alongside schools to go further to get best value from their
resources and is expanding the suite of productivity initiatives available. This
complements support already available such as School Resource Management
Advisors, accredited sector experts who provide peer-to-peer advice on resources;
identifying potential savings of £334m in the schools they worked with since 2018.
DfE will introduce new initiatives, tools, and services, including a new toolkit to
support schools to adopt evidence-based workforce deployment models to
ensure the best outcomes for children.

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2.17 Further Education (FE) – FE providers in England include 220 colleges and
1,300 independent training providers which support around 1.9 million learners. FE
providers receive over £12bn of government funding per year. DfE will work with
the FE sector to improve the value for money of government spend, by providing
FE Commissioner support to colleges and other relevant providers, seeking
opportunities for economies of scale arising from more 16-19 year olds moving into
post-16 education and training, simplifying processes and reducing data
collection burdens, providing greater certainty of capital funding to enable
colleges with estate planning, and exploring commercial efficiencies.

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Home Office
Table 2.3: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Reducing third-party resources 25 71 153
Reform-driven structure and workforce changes 141 264 380
Total efficiencies net of investment 166 335 533
Total efficiencies net of investment (%) 0.9% 1.8% 2.9%
Memo: total gross efficiencies 198 367 558
Memo: total gross efficiencies (%) 1.1% 2.0% 3.1%
2.18 The Home Office is responsible for public safety, border security and
national security. It plans to spend £18.2bn RDEL (excluding ODA) in 2025-26, the
baseline year against which efficiency gains are calculated.
2.19 The Home Office will deliver efficiency gains of £533m per year by 2028-29
through:
• reducing the use of third-party resources – including insourcing specialist
digital roles; and
• reform-driven structural and workforce changes – including increased
automation and use of AI.
2.20 The numbers set out in the table above include both cash-releasing and non
cash-releasing efficiencies from the new Police Efficiencies and Collaboration
Programme (PECP).
2.21 The eventual composition of the total efficiencies may vary from the figures
set out above as more detailed plans are developed for different areas of activity
and upfront investments to enable efficiencies are confirmed. This efficiency
delivery plan will remain agile to ensure that the latest cutting-edge technology
can be harnessed to improve productivity and reduce cost.
Reducing third-party resources
2.22 Building on previous successful realisation of commercial savings, Home
Office contracts will be reviewed, prioritising those with greatest scope for
efficiencies. Specialist digital roles will be insourced, reducing reliance on external
contractors and achieving the same outputs at lower cost. This is in line with the
implementation of the government’s ‘A blueprint for modern digital government’
which encourages the use of in-house talent to reduce dependency on third
parties. The Police Efficiencies and Collaboration Programme will also drive
savings in third party spend across police forces.
Reform-driven structural and workforce changes
2.23 The Home Office plans to create a more productive and agile workforce, ever
more focused on service delivery and seeking to maximise the value from every

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pound spent. It will also be using similar approaches to drive a more efficient and
productive workforce through the Police Efficiencies and Collaboration
Programme within policing. This will be achieved through:
• increased automation and use of AI to reduce reliance on manual processes
so staff time can be focused on more complex tasks;
• streamlining to reduce duplication, particularly in non-frontline functions, so
that roles and responsibilities directly support the Home Office’s core
missions; and
• strategic workforce planning that combines development of critical skillsets
alongside careful recruitment controls that are calibrated to protect
operational capacity whilst responding to changing demands.

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Ministry of Justice
Table 2.4: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation
£ million 2026-27 2027-28 2028-29
Digital reform 5 61 121
Commercial efficiencies
Policy transformation and reform
65
19
66
59
66
89
Additional efficiencies – inc. energy efficiency 30 52 80
Total efficiencies net of investment 119 238 356
Total efficiencies net of investment (%) 1.0% 2.0% 3.0%
Memo: total gross efficiencies 182 300 417
Memo: total gross efficiencies (%) 1.5% 2.5% 3.5%
2.24 The Ministry of Justice (MoJ) is responsible for the justice system including
courts, prisons, and probation services. It has 35 agencies and public bodies and
plans to spend £11.9bn RDEL in 2025-26, the baseline year against which efficiency
gains are calculated.
2.25 MoJ will deliver efficiency gains of £356m per year by 2028-29 through:
• digital reform – delivering efficiencies through artificial intelligence (AI)
adoption, the use of technology for offender management in the community
and bringing some services in-house;
• commercial efficiencies – increasing value for money through improved
planning of contracts and focusing on outcomes rather than inputs;
• policy transformation and reform – wider reform across the department; and
• additional efficiencies – including improved energy efficiency.
Digital reform
2.26 MoJ will roll out AI across its agencies to streamline repetitive administrative
tasks, enhance decision-making and improve service quality. This will free up staff
time to focus on more impactful frontline work, as well as improved justice
outcomes.
2.27 MoJ is currently investigating and piloting new uses of technology for
offender management in the community. As part of this, it is developing a
proposal for tech-enabled remote check-ins for offenders in the community. If the
pilots prove successful, MoJ will expand the programme through further
investment. Initial estimates suggest this expansion could release around 27,000
hours of probation staff time per year.
2.28 MoJ is re-procuring contracts through the Evolve Portfolio and bringing
some services in-house. The Evolve Portfolio ensures critical workplace and core
technology services under three soon-to-expire contracts are replaced by modern,
secure and flexible contracts. Evolve will generate efficiencies from productivity

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improvements, proactive replacement of equipment and a reduction in business-
as-usual operating costs.
2.29 MoJ will also continue to seek benefits from ongoing efficiency programmes,
including HM Courts & Tribunal Service reform, which looks to improve court and
tribunal services using new technology and ways of working. This programme has
already realised major efficiencies through headcount and estate reductions, with
ongoing benefits through this SR period.
Commercial efficiencies
2.30 MoJ is committed to further leveraging supply chains to deliver increased
value for money through contracts. Improving planning and engaging with
suppliers will produce cash-releasing efficiencies during the procurement
process. Focusing on outcomes rather than inputs will allow MoJ to deliver non
cash-releasing efficiencies throughout the lifetime of a contract.
Policy transformation and reform
2.31 MoJ is undertaking a broader suite of reform that it expects will contribute
towards meeting the remainder of the efficiency target. This includes the
Independent Review of Criminal Courts as well as the Sentencing Review.
2.32 The Sentencing Review recommends comprehensively overhauling
sentencing and puts public protection and cutting crime at the heart of the
justice system, to safeguard the system and avoid prisons running out of capacity.
One key change announced by the Lord Chancellor through this Review will be a
new “earned progression model” that will see prisoners earn their way to release
through good behaviour or face longer in jail.
2.33 The Review will be supported through investment in the probation system
and, by 2028-29, up to £700m more will be invested to boost capacity and
resilience. The changes announced through the Review will see a greater
proportion of offenders managed in the community – as this is generally less
expensive than managing offenders in custody, MoJ expect there to be a non
cash-releasing efficiency benefit in the long-term from these changes.
2.34 In the coming months, Sir Brian Leveson will also publish the findings of his
Independent Review of the Criminal Courts and we expect that the Government’s
response to these will also lead to a more efficient running of the Criminal Courts.
2.35 The efficiencies from these as well as other efficiencies coming from wider
policy transformation, reform and efficiencies will enable the department to meet
the efficiency target.
Additional efficiencies
2.36 Further efficiencies will be delivered, for example by the forthcoming Victims
and Courts Bill, energy efficiency programmes, and digitising social visit systems.

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2.37 MoJ is exploring a range of further activity to drive increased departmental
efficiency and productivity over the SR period. It is creating a clear picture of how
the department operates and is organised, to help ensure it is delivering the right
activities, in the right way, with the right workforce – including streamlining non-
frontline resource where appropriate. The department is considering a more agile
workforce, to ensure it is able to swiftly react to emerging priorities. MoJ will also
continue to investigate efficiency opportunities in key policy areas such as legal
aid and victims, to ensure that it is delivering value for money for the taxpayer.

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Ministry of Defence
Table 2.5: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Digital reform 4 10 11
Category management and acquisition reform 65 280 315
Energy efficiencies 22 34 49
Service family accommodation 310 324 334
Pipeline efficiencies 161 178 196
Total efficiencies net of investment 563 826 905
Total efficiencies net of investment (%) 1.4% 2.1% 2.3%
Memo: total gross efficiencies 624 872 949
Memo: total gross efficiencies (%) 1.6% 2.2% 2.4%
2.38 Ministry of Defence (MOD) works for a secure and prosperous United
Kingdom with global reach and influence. It protects the British people, territories,
values and interests at home and overseas, through strong armed forces and in
partnership with allies, to ensure security, support national interests and
safeguard prosperity. It is supported by 16 agencies and public bodies and plans to
spend £38.9bn RDEL (excluding ODA) in 2025-26, the baseline year against which
efficiency gains are calculated.
2.39 The Strategic Defence Review has set out the department’s policy
objectives, and how these will be met while reducing costs and delivering
maximum capability output from defence spending. The department will deliver
£905m of efficiencies per year by 2028-29, including through digitisation and
modernisation, category management and acquisition reform, estate and energy
efficiencies.
2.40 Alongside this, there is significant further work underway across MOD that
will deliver nearly £6bn of additional efficiencies and savings across the SR period
and beyond. The Defence Reform and Efficiency Plan, to be published in the
Autumn, will set out how the restructured department will reduce duplication,
reform the department’s Civil Service workforce to increase productivity, realise
greater efficiencies in the department’s estate, and improve procurement
processes.
Digital reform
2.41 MOD has ambitious, deliverable plans to use technology in every task and
service possible, with a step change in the digital capability of its people and
systems. This includes moving service delivery online, and augmenting personnel-
heavy processes with technology to reduce the burden on its people and improve
outcomes. For example, the Defence Business Services Automation Garage aims
to improve a wide range of routine processes across the business, reducing lead
times for the Armed Forces Compensation Scheme and Guaranteed Income
Payment. Project Guardian, a review of physical security in Northern Ireland, is
also exploring increased digitisation to reduce costs. This work will deliver £11m of
efficiencies per year by 2028-29.

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Category management and acquisition reform
2.42 Category management delivers MOD-wide efficiencies from the products
and services it buys. It focuses on categories of related supplier spend – analysing
similar and related products and services to find and secure efficiency
opportunities through centralisation and reducing duplication.
2.43 MOD will streamline the acquisition process to reduce duplication and
bureaucracy. A proportionate, risk-based approach to assurance will enable faster,
well-governed delivery. A more tailored approach reflecting the type of capability,
supplier and risk involved, will drive non cash-releasing benefits, including faster
pace and greater adaptability to future challenges. Collectively, these reforms will
enhance MOD’s ability to achieve more with fewer resources and will deliver
£315m of efficiency gains per year by 2028-29.
Energy efficiencies
2.44 MOD will use a data-driven approach to drive efficiencies in utilities usage.
Investment in onsite energy generation, low energy lighting, and installation of
low volume sanitaryware will generate cash-releasing efficiencies and improve
sustainability across MOD. Upgrading data tools will underpin the identification of
further efficiency opportunities and enable MOD to accurately track benefits
realisation. These reforms will deliver £49m of efficiency gains by 2028-29.
Service family accommodation
2.45 In December 2024, MOD reacquired over 36,000 Service Family
Accommodation properties from Annington Homes. This has resulted in
significant year-on-year savings on rental payments and other associated costs of
leasing, totalling £334m in 2028-29 and unlocking the ability to improve the
military housing estate. MOD is now proceeding at pace on a new Defence
Housing Strategy, involving independent experts and forces families, to deliver a
generational renewal of the entire service family accommodation estate. In
addition to improving living conditions for forces families – a key personnel
retention issue – this work is expected to deliver more effective and efficient use
of MOD land, with significant estate and energy efficiencies. Further details will be
outlined in the upcoming Defence Housing Strategy.
Pipeline efficiencies
2.46 MOD has a pipeline of thousands of distinct efficiency-related workstreams
which will generate further efficiencies of £196m per year by 2028-29. These
include improved business management systems, optimising base security using
technology and refreshed policies to reduce security costs, and consolidation of
regional Army Field Reserve support.

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Foreign, Commonwealth and Development Office
Table 2.6: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Workforce reform 5 9 12
Digital reform 5 6 7
Arm’s-length bodies and public bodies1 9 47 57
Integrated Security Fund 6 9 10
Total efficiencies net of investment 25 71 85
Total efficiencies net of investment (%) 1.3% 3.5% 4.3%
Memo: total gross efficiencies 51 76 86
Memo: total gross efficiencies (%) 2.6% 3.8% 4.3%
1 BBC World Service is not captured, given any future efficiencies will be heavily influenced by
decisions on the transition of the ODA budget to 0.3% of Gross National Income by 2027. BBC World
Service will announce any plans for future efficiencies in line with its operational independence.
2.47 The Foreign, Commonwealth and Development Office (FCDO) is
responsible for leading the country’s international development, diplomatic and
consular work. It is supported by 10 agencies and public bodies, and plans to
spend £2.0bn RDEL (excluding ODA) in 2025-26, the baseline year against which
efficiency gains are calculated. This includes £0.6bn RDEL relating to the
Integrated Security Fund (ISF) which is managed by the Cabinet Office.
2.48 The FCDO will deliver efficiency gains of £76m per year by 2028-29
through:
• workforce reform – modernising and simplifying the Overseas Employment
Framework, reviewing grading standards, and increasing flexibility;
• digital upgrades and insourcing – removing legacy IT systems via the ‘Osprey’
platform and reducing contingent labour costs by insourcing digital roles;
• ALBs and public bodies – including the British Council which will deliver
significant efficiencies through operational reform.
2.49 The ISF will also deliver efficiency gains of £10m by 2028-29 through
workforce and digital reform managed by the Cabinet Office.
2.50 Alongside these technical efficiencies, FCDO will deliver the FCDO2030
change programme, which will create a more modern, open, delivery and
outcome-focused organisation. This is an ambitious plan to transform the FCDO
into a smaller, technologically advanced department with planned investment in
both workforce reform and digital transformation that will drive significant
efficiencies in addition to those set out in this plan.
Workforce reform
2.51 The FCDO will tighten grading standards to ensure roles are accurately,
independently and consistently evaluated and appropriately remunerated. This

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will counter a pattern of grade inflation that has emerged over the past decade
and more robustly support cost control. This will be complemented by stronger
organisation and job design processes to reduce the number of staff in flexible
resource pools.
2.52 The FCDO will reform the Overseas Employment Framework to modernise
and simplify the end-to-end overseas allowance package for staff, streamlining
provisions to make the system more transparent. Aspects of the package will be
combined to reduce processing costs, while the monetary value of specific
allowances are being reviewed and revised.
Digital reform
2.53 The FCDO will deliver updated IT services via the ‘Osprey’ platform and by
phasing out the ‘Firecrest’ platform. Replacing legacy IT systems and delivering
streamlined services will deliver efficiencies by maximising cloud investment,
optimising the supply chain, and minimising logistics expenses.
2.54 The FCDO will insource digital roles, reducing contingent labour costs and
thereby delivering efficiencies. This will enable the FCDO to start building more
resilient internal capability, while retaining flexibility and the ability to source
external expertise and surge capacity where required.
Arm’s-length bodies and public bodies
2.55 The FCDO will deliver efficiencies through its ALBs. Investment in
automation, AI, and digital tools will streamline event delivery, information
management, and compliance functions. Where appropriate, organisations will
also review workforce and governance arrangements and consolidate back-office
functions. Collectively, these changes will enhance impact and resilience while
delivering sustained efficiencies across FCDO’s ALB network.
2.56 The British Council will deliver efficiencies through a Professional Services
Transformation programme to reform the finance, HR, procurement and digital
functions. It will harness digital advancements and automation to drive
productivity. It will also transform customer management support and
international exam delivery, removing duplication, and updating global IT
contracts to reduce costs and improve security.
Integrated Security Fund
2.57 The ISF is a cross-government fund designed to support initiatives that
address national security risks domestically and overseas. The ISF will deliver
efficiencies through workforce reform and new technology. By consolidating
overseas programme management and other administrative tasks, the ISF will
reduce costs and make its workforce more flexible, allowing it to better respond
to a constantly evolving and increasingly uncertain national security backdrop.
Investments in automation, AI, and digital tools will further streamline
programme delivery. Together, these changes will make the ISF better equipped
to support delivery of the National Security Council’s top priorities.

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Ministry of Housing, Communities and Local
Government
Table 2.7: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Workforce and digital reform 37 40 45
Funding simplification 5 4 5
Total efficiencies net of investment 42 44 501
Total efficiencies net of investment (%) 1.0% 1.1% 1.2%
Memo: total gross efficiencies 48 51 56
Memo: total gross efficiencies (%) 1.2% 1.2% 1.4%
1 Taking into account the impact of MHCLG projects and programmes on local government, there
will also be efficiency gains for local government who will then be able to recycle these gains into
frontline service. These are not quantified in this document.
2.58 The Ministry of Housing, Communities and Local Government (MHCLG) is
responsible for supporting local councils, safeguarding community cohesion, and
delivering affordable and quality housing. It is supported by 15 agencies and
public bodies, and plans to spend £4.1bn RDEL (excluding ODA) in 2025-26, the
baseline year against which efficiency gains are calculated.
2.59 MHCLG will deliver efficiency gains of £50m per year by 2028-29 through:
• workforce and digital reform – improving productivity by using AI, insourcing
services, using digitally enabled processes to support the delivery of cladding
remediation and ensuring the workforce is agile and streamlined to face the
demands of the future; and
• funding simplification for local government – reducing the number of onerous
competitive bidding processes and streamlining data requests from central
government.
2.60 The department will also deliver efficiencies in local government through
these and other measures. These efficiency gains are not captured in the targets
in table 2.7, but are included in this plan, as they will deliver value for money
benefits to wider public sector delivery.
Workforce and digital reform
2.61 MHCLG will increase productivity by using AI to expedite routine tasks,
quickly checking simple errors and helping with administrative tasks such as
note-taking. This will reduce demands on staff time by an estimated 500,000
hours per year.
2.62 MHCLG will drive down the use of suppliers and consultants, and has
already achieved a 50% reduction in consultancy since 2023-24. Further
efficiencies will be driven by building digital capability and learning platforms in-
house, and using the Government Legal Department as the default for legislative
activities rather than external firms. This includes insourcing services to improve
the integrity of local government elections, such as by digitising processes. The

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department will also roll out in-house support for digital methods in policy design
and delivery, replacing the use of contractors, lowering costs and ensuring
learning and experience is embedded within permanent staff, as well as
potentially creating more efficient outputs and outcomes.
2.63 MHCLG will streamline the delivery of services, consolidating the full
cladding remediation portfolio into the Cladding Safety Scheme. This will deliver
efficiency gains faster, using digitally enabled processes to support cladding
remediation delivery, with built-in stronger counter-fraud protections.
2.64 The above efficiency plans will enable a more slimline and agile workforce,
which will be delivered in addition to a voluntary exit scheme which has already
been launched.
Funding simplification
2.65 MHCLG is leading the way across Whitehall to radically simplify funding for
local government, thereby providing councils with more flexibility and certainty
over a greater portion of their income, and cutting wasteful bureaucracy.
Government departments currently give out more than 300 individual grants to
councils. The government’s current approach to grants, ringfences and reporting
requirements can prevent councils from using their resources in the most
impactful way locally.
2.66 MHCLG will also consolidate existing local government grant funding
schemes, significantly reducing the number of MHCLG-led grants – further detail
will be published through the 2026-27 Local Government Finance Settlement
(LGFS). This consolidation will reduce administrative costs for MHCLG, with
greater efficiencies expected for local government. The additional flexibility on
how funding is spent, together with longer planning horizons, will allow local
authorities to deliver better outcomes.

2.67 MHCLG is also working with local authorities and other organisations to
streamline the process of submitting data and information to the government for
funding applications, including by moving from custom software for each fund to
a single platform. In addition to significantly reducing administrative burdens for
users, it will enable process improvements within the department through a
standardised approach to reporting and monitoring, and more efficient data
processing.

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Department for Culture, Media and Sport
Table 2.8: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Workforce reform 12 13 14
Financial management and grants 11 13 14
Digital reform 4 7 9
Communications and marketing 2 5 7
Estates -1 5 9
Total efficiencies net of investment 29 43 52
Total efficiencies net of investment (%) 1.9% 2.8% 3.4%
Memo: total gross efficiencies 34 44 52
Memo: total gross efficiencies (%) 2.2% 2.8% 3.4%
2.68 The Department for Culture, Media and Sport (DCMS) is responsible for
supporting culture, arts, media, sport, tourism and civil society in England. It is
currently supported by 42 agencies and public bodies and plans to spend £1.5bn
RDEL (excluding ODA) in 2025-26, the baseline year against which efficiency gains
are calculated.
2.69 DCMS and its public bodies will deliver efficiency gains of £52m per year by
2028-29 through reforms to:
• workforce – consolidating and restructuring staffing, reducing turnover levels,
reducing reliance on contingent or contracted labour and reviewing staff
grading, pay scales and locations;
• finance and grants – tighter budget management and staff productivity gains
from automation and more investment in fraud prevention;
• digital – modernising applications, reducing duplicate digital solutions and
devices, updating IT systems to enable more automation to reduce staff time
on administrative tasks;
• communications and marketing – designing user-focused services,
consolidating websites, restructuring marketing teams and reducing reliance
on external design contractors; and
• estates – merging back-office and storage functions into single sites, reducing
office space across regional ALB sites, and leasing spare storage space.
Workforce reform
2.70 DCMS and its public bodies will make staff productivity gains by
consolidating services, restructuring, and reviewing staff grading structures and
pay scales. It will also reduce the operating costs of specialist functions, including
security and digital/data services, by bringing services in-house, and reducing the
reliance on external contractors and providers. Efficiencies are spread across the
core department and public bodies. All of DCMS’s public bodies are encouraged

26

to maintain a productive and efficient workforce through a combination of
reduction in full-time equivalent staff, staff re-grading and time savings.
Financial management and grants
2.71 DCMS and its public bodies are reviewing their approach to grants. This will
enable more timely delivery, as well as the ability to process a higher number of
applications. This will be achieved by offering closer sector support and training in
grant development and administration. DCMS’s public bodies will also look to
consolidate their grant approval processes, reducing duplication within their
organisations. They will also work on counter fraud measures to minimise the risk
of fraudulent applications and loss, ensuring grants are provided to those who
need them. DCMS currently generates a return on counter fraud investment of
3:1.
2.72 DCMS and its public bodies will also change some of its approaches to
financial management, reducing duplication across teams. It will improve
productivity of finance teams across the group, with systems improvements and
team restructuring. It will also take a more holistic view to reducing contingency
budgets in low-risk programmes, ensuring a tighter approach to programme
budget management. DCMS’s public bodies will also look to increase investment
opportunities through better cash management, ensuring opportunities for
increased income are met. To do this effectively, there is a small cost associated
with systems improvements and relevant training.
Digital reform
2.73 DCMS and its public bodies will modernise core IT infrastructure, including
new HR, finance and Customer Relationship Management systems and new
collections databases, reducing system and device duplications. In addition,
DCMS will join the government’s shared services programme. DCMS and its group
anticipates that around two-thirds of the savings will be achieved through
increased productivity and saving of staff time, with one third a direct result of
running cheaper systems or contracts.
Communications and marketing
2.74 DCMS and its public bodies will increase the productivity of their
communications and marketing functions by improving the design of user-
focused services and merging websites. It will also restructure its marketing
teams and bring digital design services in-house.
Estates
2.75 DCMS will reduce its estate footprint across a number of its public bodies
and the core department by combining back-office sites (including Bristol,
Cambridge, Swindon and York), reducing office space no longer needed, and
leasing out spare museum storage space. It will replace commercial leased
storage with in-house alternatives, and support public bodies to find energy
efficient ways to reduce ongoing costs.

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Department for Science, Innovation and Technology
Table 2.9: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
AI and automation -1 1 7
Improving and expanding shared services 1 1 2
Organisational effectiveness 10 14 21
Streamlining ALB sponsorship and activities 0 1 2
Total efficiencies net of investment 9 17 32
Total efficiencies net of investment (%) 1.6% 3.1% 5.6%
Memo: total gross efficiencies 13 20 34
Memo: total gross efficiencies (%) 2.4% 3.6% 6.0%
2.76 The purpose of the Department for Science, Innovation and Technology
(DSIT) is to drive economic growth, improve the performance and productivity of
government and empower citizens. It is supported by 16 agencies and public
bodies and plans to spend £0.6bn RDEL (excluding ODA) in 2025-26, the baseline
year against which efficiency gains are calculated.
2.77 DSIT will deliver efficiency gains of £32m per year by 2028-29 through:
• AI and automation – developing and rolling-out AI tools and platforms, initially
for tasks like summarisation, drafting and automation of repetitive processes;
• improving and expanding shared services – benefiting from economies of
scale and reduced costs that arise from apportioning fixed shared service costs
across a wider departmental customer base;
• organisational effectiveness – streamlining and enhancing operating
structures and processes, reviewing workforce structure and numbers to
reduce headcount (particularly Senior Civil Servants) and shifting staff grade
mix. This includes replacing external digital specialists and contractors with
civil servants where possible; and
• streamlining ALB sponsorship – reducing duplication and strengthening
alignment of policy and strategy functions within DSIT and its ALBs.
AI and automation
2.78 DSIT will be an exemplar for modern digital government through exploring,
identifying, and implementing AI opportunities across the department, to
improve staff productivity and free up time spent on administrative tasks. It aims
to automate processes such as summarisation, drafting and other repetitive
processes, as well as exploring more ambitious opportunities to reimagine the
way the department operates. DSIT will achieve productivity improvements in key
functions including policy, operational delivery, legal, and Digital, Data and
Technology (DDaT), together making up approximately 81% of departmental
headcount. Potential efficiencies are estimated at £7m per year by 2028-29.

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Improving and expanding shared services
2.79 Expanding the use of Integrated Corporate Services (ICS) will enable DSIT
and others to benefit from increased economies of scale, reducing unit costs
across commercial, digital, estates, finance, HR and security functions. DSIT is also
the home department for the Matrix shared services programme which will
modernise and consolidate the delivery of back-office systems of nine
departments.
Organisational effectiveness
2.80 DSIT is streamlining and consolidating functional activities, through
technological innovation and process re-engineering. Specific areas of focus
include common and cross-cutting activity, such as business support, service
operations and improving commercial and grants outcomes. This will also
facilitate a reduction in the overall number of Senior Civil Servants and improve
management ratios. This will lead to efficiency gains of £8m per year by 2028-29
from a combination of reductions in headcount and commercial spend.
2.81 DSIT also plans to reduce reliance on external consultancy and managed
services by transitioning these roles to in-house civil servants. DSIT expects to
reduce spend on external DDaT resources in the Government Digital Service over
the SR period. It also expects to reduce contingent labour by c.40% by 2028-29.
Transitioning roles from external contracts to civil servants will generate savings of
£13m per year by 2028-29 and will support the development of a more diverse and
inclusive workforce.
Streamlining ALB sponsorship and activities
2.82 DSIT will review its sponsorship model for managing the performance and
risk of its ALBs to explore efficiency gains. As part of the wider Cabinet Office ALB
landscape review, DSIT is exploring how to eliminate duplication, strengthen
alignment of policy and strategy functions and reduce duplication of corporate
functions. In addition to finding technical efficiencies in core DSIT, its ALBs will be
making significant savings through use of AI and automation, wider change and
improvement programmes, and rationalisation and co-location of estates as it
continues to move staff out of London in line with ‘Places for Growth’ targets. UK
Research and Innovation (UKRI) and the UK Space Agency (UKSA) are already
undergoing an ambitious programme of reforms and UKSA are making
significant cuts to consultancy spend.

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Department for Transport
Table 2.10: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation
£ million 2026-27 2027-28 2028-29
Corporate initiatives 52 144 199
Regulated settlements 256 331 424
Reform of executive agencies 6 16 39
Total efficiencies net of investment 313 491 663
Total efficiencies net of investment (%) 3.8% 5.9% 8.0%
Memo: total gross efficiencies 320 500 676
Memo: total gross efficiencies (%) 3.9% 6.0% 8.2%
2.83 The Department for Transport (DfT) is responsible for supporting the
transport network that helps the UK’s businesses and gets people and goods
travelling around the country. It plans and invests in transport infrastructure to
keep the UK on the move. It is supported by 23 agencies and public bodies and
plans to spend £8.3bn RDEL in 2025-26, the baseline year against which efficiency
gains are calculated.
2.84 DfT will deliver efficiency gains of £663m per year by 2028-29 through:
• corporate initiatives – including workforce reform, estate reform, greater use
of AI and digital tools and de-duplication in processes, enabled in part by the
establishment of Great British Railways;
• regulated settlements for Network Rail and National Highways; and
• reform of DfT’s Executive Agencies – including modernising driver testing and
corporate systems in the Driver and Vehicles Standards Agency (DVSA),
exploring the use of AI and automation tools in the Driver and Vehicle
Licensing Agency (DVLA); and improved functionality for customers within
the Vehicle Certification Agency (VCA).
Corporate initiatives
2.85 DfT’s workforce strategy will help it become a smaller department, which is
more skilled, agile, and productive. This strategy will be delivered through
changes to spans of control and layers of leadership, refining the department’s
approach to sponsorship of delivery bodies, increasing resource flexibility, and
greater use of AI and digital tools. For example, the Unity Programme will unlock
productivity benefits from shared services, and the department has established
an AI programme to leverage efficiencies through DfT-specific AI technical
projects. DfT will also rationalise its London estate and expand its presence in
Leeds and Birmingham.
2.86 DfT will drive efficiencies through the streamlining of governance and
processes within the rail sector. For example, the transfer of rail services into
public ownership over the coming years will release efficiencies as DfT moves
from several owning groups to one. This will remove duplication of functions and

30

create economies of scale. DfT also aims to consolidate rail websites and
ticketing, enabling efficiencies in operational running costs.
Regulated settlements
2.87 Network Rail is responsible for the railway infrastructure in England,
Scotland and Wales. It is provided with a five-year settlement for each Control
Period, covering its operations, maintenance, support functions, and renewals. As
part of its regulated funding agreement, Network Rail is required by the Office of
Rail and Road (ORR) to be more efficient and is set targets. Efficiencies over this
SR period will include improvements to access planning, better integration with
the supply chain to drive more efficient design and delivery, and changes to
contracting arrangements such as Southern’s Integrated Delivery model. In
addition, Network Rail will use technology solutions to deliver efficiencies as well
as benefits to performance and safety.
2.88 National Highways is responsible for maintaining and enhancing the
Strategic Road Network. Efficiencies are embedded in its five-year financial
settlement for each Road Investment Strategy (RIS) and monitored by the ORR.
The Road Investment Strategy 3 (RIS3) is due to start in April 2026. The settlement
and embedded efficiencies are due to be agreed shortly, but are not reflected in
this plan.
2.89 Both Network Rail and National Highways have a proven track record for
delivering their agreed efficiencies as demonstrated through their previous
regulated settlements.
Reform of executive agencies
2.90 DVSA has multiple projects to modernise driver testing, including moving
to digital test certificates and online test route planning. It will also increase digital
capability, reducing reliance on contractors, simplify and standardise corporate
services systems and reduce its estate and running costs.
2.91 DVLA will deliver efficiencies through a combination of:
• AI initiatives to increase automation and self-service at its contact centre;
• expanding the use of Robotic Process Automation software to a wider pool of
transactions and services such as data transfers between DVLA and HM
Courts and Tribunal Service;
• automating Vehicle Excise Duty (VED) refunds to customers instead of using
mail; and
• wider organisational and workforce restructure.
2.92 The VCA has an established Evolve programme to replace aging, inefficient
systems and tools to meet increased workload arising from a new GB vehicle type
approval scheme. Efficiencies will come from faster processing time from
automation, reduced duplication and error and improved progress reporting and
self-service functionality for customers.

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Department for Energy Security and Net Zero
Table 2.11: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Workforce and digital reform 22 35 40
Delivery activities 8 48 117
Total efficiencies net of investment 30 82 157
Total efficiencies net of investment (%) 1.7% 4.5% 8.7%
Memo: total gross efficiencies 93 144 159
Memo: total gross efficiencies (%) 5.1% 7.9% 8.8%
2.93 The Department for Energy Security & Net Zero (DESNZ) is responsible for
UK energy security, protecting billpayers and reaching net zero. It is supported by
15 agencies and public bodies and plans to spend £1.8bn RDEL (excluding ODA) in
2025-26, the baseline year against which efficiency gains are calculated.
2.94 DESNZ will deliver efficiency gains of £157m per year by 2028-29 through:
• workforce and digital reform – improving productivity by using AI, better use of
digital platforms and technology, insourcing expertise and increasing use of
shared services; and
• delivery activities – to deliver outcomes with less of a burden on households by
taking advantage of greater economies of scale and harnessing technologies
to drive increased operational productivity within ALBs.
Workforce and digital reform
2.95 DESNZ will deliver non cash-releasing workforce productivity benefits of
£19m per year by 2028-29 through integrating AI into the working habits of staff
to assist with everyday tasks and free up time for other activities. In addition,
DESNZ is exploring further applications of AI in its operational delivery: in
planning, consumer facing activity, counter fraud work, and policy design and
consultation.
2.96 DESNZ has developed a data improvement plan to reduce grant scheme
fraud and error, promote reuse of data, reduce duplication of data acquisition, and
replace time-consuming manual data processing. Together, this will deliver £6m
of efficiency gains in 2028-29. This will also result in better evidenced policy and
operational decisions that will help contribute to better targeting of grants and
schemes and improved productivity of the department through faster access to
data and insight.
2.97 DESNZ will drive down the use of contractor and consultancy spend by
building in-house expertise in key corporate functions, estimated in some cases to
be 40-60% cheaper.
2.98 Consolidation of common activities and sharing of digital platforms is key
to DESNZ’s transformation. DESNZ will standardise grant management and

32

contact centre operational models across the department, bringing grant
schemes together onto fewer shared digital platforms, to deliver £7m of efficiency
gains by 2028-29.
2.99 Integrated Corporate Services (ICS) is a shared corporate centre set up by
DESNZ and the Department for Science, Innovation and Technology providing
estates, digital, commercial, HR, finance, shared service management and counter
fraud services. ICS will deliver £5m in efficiencies by 2028-29 across DESNZ
activities. This will be achieved primarily through ambitious plans to scale up and
onboard additional government departments to ICS services, optimising team
structures, standardising and automating processes, and consolidating digital
services and contracts.
Delivery activities
2.100 The Nuclear Decommissioning Authority will deliver operational efficiencies
of £116m by 2028-29. Activities include corporate restructuring, increased sharing
of services, improving the effectiveness of corporate functions and through asset
and performance management.
2.101 Non cash-releasing efficiencies of £0.2m in the Emissions Trading Scheme
will be delivered by 2028-29 through streamlined contracting and associated
management.
2.102 The Mining Remediation Authority has committed to increase activities
that replace the need for government funding by £1m by 2028-29. In addition to
optimising operations through better technology, this will involve issuing permits
for commercial use of ochre which would otherwise have gone to landfill and,
reducing energy costs by investing in solar panels.

33

Department for Environment, Food & Rural Affairs
Table 2.12: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Streamlining the department and services 22 35 39
Arm’s-length bodies transformation 7 29 57
Arm’s-length bodies delivery efficiencies 23 36 49
Total efficiencies net of investment 51 100 144
Total efficiencies net of investment (%) 1.1% 2.2% 3.1%
Memo: total gross efficiencies 116 172 220
Memo: total gross efficiencies (%) 2.5% 3.7% 4.8%
2.103 The Department for Environment, Food & Rural Affairs (Defra) is responsible
for improving and protecting the environment in England, as well as overseeing
food, farming, animal welfare, rural communities and environmental regulation. It
is supported by its network of ALBs and plans to spend £4.6bn RDEL in 2025-26
(excluding ODA), the baseline year against which efficiency gains are calculated.
2.104 Defra will deliver efficiency gains of £144m per year by 2028-29 through: 
• improving workforce productivity in the core department;
• modernising services delivered by ALBs; and
• improving efficiency in ALBs.
2.105 Defra is identifying further opportunities for efficiency and streamlined
outcome delivery through implementation of the recommendations of the Dan
Corry Review into Defra’s regulatory landscape, and Sir Jon Cunliffe’s Independent
Water Commission.
Streamlining the core department and group-wide services 
2.106 Defra will reduce costs in the core department by rationalising its estate –
including reviewing its property portfolio, ensuring the estate is right-sized for its
people. Further savings will come from streamlining back-office functions,
decreasing the number of digital devices issued to staff, and reducing reliance on
digital contractors. Some savings will come from headcount reductions. The
department has already reduced headcount by around 8% since July 2024 and
will reduce by a further 5% during 2025-26.
Transformation and optimisation of services delivered by A LBs  
2.107 Defra will deliver £3m in efficiencies per year in its disease and pest
management services. This includes migrating the animal health systems from
legacy systems, automating document checks, and simplifying policy delivery.
2.108 Defra will reform grants and payments administration through
consolidating and automating processes through a common grants platform. It

34

will consider onboarding grants across the department onto this service over
time, as well as potential organisational reform (such as consolidation of grants
administration into a single grants delivery body).
2.109 £14m in efficiencies per year by 2028-29 will come from reforming how
Defra and its ALBs ensure compliance with environmental regulations – covering
inspections, enforcement, and monitoring – through simplifying and digitising
processes, and improving data use.
2.110 Transforming registration, licensing, and approvals services using AI and
automation will produce £7m in efficiencies per year by 2028-29. Enhanced digital
services will cut duplication and improve user experience.
Arm’s length bodies delivery efficiencies  
2.111 Defra’s ALBs will achieve £49m in non cash-releasing efficiencies per year
by 2028-29. For example, the Environment Agency has committed to introduce
remote monitoring and flood warning automation, simplify partnership funding
arrangements, rationalise organisational structures and reduce reliance on
external contractors.

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Department for Business and Trade
Table 2.13: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation
£ million 2026-27 2027-28 2028-29
Organisational design 7 15 18
Digital improvements to services 1 1 2
Transforming corporate functions 16 38 56
Total efficiencies net of investment 25 54 75
Total efficiencies net of investment (%) 1.4% 3.0% 4.2%
Memo: total gross efficiencies 32 54 75
Memo: total gross efficiencies (%) 1.8% 3.0% 4.2%
2.112 The Department for Business and Trade (DBT) is responsible for supporting
businesses to invest, grow and export. It is supported by 19 agencies and public
bodies and plans to spend £1.8bn RDEL in 2025-26, the baseline year against
which efficiency gains are calculated.
2.113 DBT has a bold transformation plan to become a simpler, more effective
department that’s digitally enabled to deliver for business and drive growth. The
first phase of this plan is outlined here and will deliver £75m in efficiency gains per
year by 2028-29 through:
• organisational design – reviewing its operating model to focus on growth
generating areas. This includes restructuring the Office for Investment (OfI),
overseas network, trade and economic security and business sector support;
• digital improvements to services – harnessing AI to accelerate delivery and
introducing a new Business Growth Service to streamline government advice,
reduce the burden of regulation and provide support for small and medium
sized enterprises (SMEs); and
• transforming corporate functions – reducing support functions by reviewing
organisational design and services, adopting AI tools, and reducing
commercial spend, for example on contingent labour.
Organisational design
2.114 DBT and its public bodies will make productivity gains by restructuring to
become a smaller, leaner organisation. An example of this is the reform to the OfI.
As announced by the Prime Minister in October 2024, the revamped OfI will roll
out a new bespoke service to ensure investors receive the strongest possible
government support. Through this transformation, running costs will be reduced,
processes streamlined and technology improved.
2.115 DBT will develop new operating models for its trade policy and economic
security groups, business sectoral support and overseas network. This will result in
fewer directorates, a smaller cadre of Senior Civil Servants and more resources
focussed towards priority sectors. The overseas network will prioritise core
markets and industrial strategy sectors.

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Digital improvements to services
2.116 DBT will introduce a new Business Growth Service (BGS) to streamline
government advice and support for SMEs, making it easier and quicker to access.
The BGS will be part of cross-government plans to create a coherent and
navigable digital support platform for business. This will enable DBT to support
more businesses at a lower cost, allowing existing resource to focus on higher
growth potential businesses, using increased adoption of advanced digital
technologies.
2.117 Alongside this, DBT will increase digital skills and the roll-out of AI tools,
speeding up some of its most labour and time-intensive tasks. For example, the
new Redbox tool will enable it to compare negotiating texts, summarise reports,
standardise formatting and draft documents.
Transforming corporate functions
2.118 DBT aims to reduce its corporate services support spend by 2028-29 with
changes in the following areas:
• commercial efficiencies through better value procurement and contracts.
DBT will leverage the new flexibilities in the Procurement Act to drive
additional value for money for the taxpayer, including delivering social and
economic value;
• efficiencies in digital delivery by reducing reliance on digital managed service
contracts. DBT will also expand its digital delivery capacity, consolidating
digital services activity and streamlining duplicative applications;
• streamlining services, automation of processes and operational model
changes. For example, by implementing new technology to improve HR and
finance function performance; and
• delivering estates efficiencies through a programme of rationalisation that will
reduce the size and cost of its estate, including focussing its regional estate in
six Places for Growth locations. It will also continue to seek opportunities to
improve estate utilisation in all locations by working with partner
organisations and the Government Property Agency.

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Department for Work and Pensions
Table 2.14: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Digital improvements to services 113 117 177
Shared services 6 6 8
Commercial efficiencies 39 79 120
Arm’s-length bodies 2 4 6
Total efficiencies net of investment 161 207 312
Total efficiencies net of investment (%) 1.6% 2.0% 3.0%
Memo: total gross efficiencies 167 230 330
Memo: total gross efficiencies (%) 1.6% 2.2% 3.2%
2.119 The Department for Work and Pensions (DWP) is responsible for
supporting people into employment, managing workplace pensions, and
administering social security. It is supported by nine agencies and public bodies
and plans to spend £10.2bn RDEL (excluding ODA) in 2025-26, the baseline year
against which efficiency gains are calculated.
2.120 DWP will deliver efficiencies of £312m per year by 2028-29 through:
• digital improvements to services – using technology to streamline and
automate processes including through the use of AI;
• shared services – leading the roll-out of the Synergy programme to drive
efficiency through shared services across government, and streamlining HR
functions, including through automation;
• commercial efficiencies – increasing efficiency and cost effectiveness through
contract re-negotiations and automating commercial functions; and
• transforming delivery in ALBs through improved processes and automation.
Digital improvements to services
2.121 DWP will reform benefit administration through the Service Modernisation
Programme. This programme includes a new business delivery model which will
cluster services, taking advantage of AI and automation, and modernise delivery
through a single customer account that provides DWP customers with access to
their services whenever they need them.
2.122 DWP will invest in digitising services across the department, including the
Jobcentre Plus network, supporting customers to access the jobs portal and learn
new skills, which will improve employment outcomes. This digitisation will also
cut administrative time on manual tasks, allowing work coaches to direct support
to the most vulnerable. DWP will also make use of AI and automation to review
CVs and reduce time spent on administrative tasks. DWP is exploring alternatives
to paper verification, such as using the Gov.uk wallet to use government-issued
credentials.

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2.123 DWP is improving data tools and dashboards that will make processing
and analysing data easier, supporting decision-making and managing customer
communication.
Shared services
2.124 DWP will lead the roll-out of the Synergy programme in transforming
business-critical services for DWP, MoJ, Home Office, and Defra, replacing end-of-
life technology and manually-based service contracts with third-party suppliers.
This will reduce administrative workload, improve decision-making accuracy, and
enhance customer engagement, leading to efficiency gains.
2.125 DWP is streamlining its HR function by eliminating and automating
processes to reduce the time spent on administrative tasks.
Commercial efficiencies
2.126 DWP will continue to drive value for money through contract
renegotiations and reducing the use of contingent labour across the department.
2.127 DWP will use technology to improve its physical security and its cost
effectiveness across its estate. DWP will drive improved productivity and
effectiveness through its new Functional Assessment Service contracts, co-
locating estates, using the same IT across providers, and incentivising providers to
make savings.
Arm’s-length bodies
2.128 DWP’s ALBs will automate outdated services and processes. The Health
and Safety Executive will further streamline its operational processes by
increasing the use of data, insight and intelligence including embedding a new
risk-based decision-making regulatory model. These changes will enhance
efficiency and will target investigations to further mitigate health and safety risks,
and ensure that frontline resources are focused on the most important work.

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HM Revenue & Customs
Table 2.15: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
Moving to digital services 11 49 126
Improving and modernising the IT estate 37 91 235
Continuous improvement and productivity 87 192 274
Restructuring the physical estate 19 57 78
Investment in compliance systems/ processes -15 14 60
Total efficiencies net of investment 139 403 773
Total efficiencies net of investment (%) 2.4% 6.8% 13.1%
Memo: total gross efficiencies 254 554 886
Memo: total gross efficiencies (%) 4.3% 9.4% 15.0%
2.129 HM Revenue & Customs (HMRC) is the UK’s tax, payments and customs
authority, responsible for collecting the money that pays for the UK’s public
services, and helping families and individuals with targeted financial support. It
plans to spend £5.9bn RDEL (excluding ODA) in 2025-26, the baseline year against
which efficiency gains are calculated.
2.130 HMRC will deliver efficiencies of £773m per year by 2028-29 in five areas:
• moving to digital services – HMRC will use digital services as its main form of
customer communication and the primary method of interaction. These
services are more convenient, more productive, and more cost-effective;
• improving and modernising the IT estate – HMRC will replace its legacy IT
infrastructure with modern platforms and services. Moving to modern IT
platforms reduces risk, enables decommissioning of costly systems, and
provides more productive digital tools for staff and customers;
• continuous improvement and productivity – HMRC has a strong track record
of continuous improvement activity. Improvements in training, guidance and
retention have also enabled HMRC to deliver productivity benefits;
• restructuring the physical estate – HMRC will consolidate its offices into
modern regional centres, exit some sites and streamline its facilities contracts;
and
• upstream compliance – HMRC aims to prevent non-compliance from
happening proactively, rather than reacting when it has occurred. This
prevents costly compliance and litigation, as well as closing the tax gap.
Moving to digital services
2.131 HMRC will continue to digitise its processes and provide digital interactions
for customers, reaching a minimum of 90% digital self-serve engagement by
2029-30. There are processes customers cannot currently complete end-to-end
through digital channels. Investment to digitise, such as Inheritance Tax
Digitisation (announced at Autumn Budget 2024), enables HMRC to move to a
digital-first strategy. This means fewer people will need to write to or call HMRC,
enabling workforce efficiency as well as offering digital services that are quicker

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and easier to use for customers, available 24/7, and consistently rated better for
customer satisfaction. Digitisation enables the elimination of outbound post,
except for digitally-excluded customers, statutory communications and letters
which generate revenue for the exchequer.
Improving and modernising the IT estate
2.132 HMRC maintains a large IT estate with a large volume of legacy systems
and platforms which are costly to run and maintain. Its strategy is to move to
Software as a Service (SaaS), buying modern platforms and services from the
market and decommissioning the legacy estate. These modern tools are cheaper
to run, generating an efficiency upon decommissioning of the legacy system.
They are also more secure and offer productivity gains.
2.133 New systems and platforms also allow for connected data that enables
HMRC to utilise AI and other digital tools to create internal efficiency and
productivity. It also allows HMRC to review and streamline the volume of services
and platforms used, and the licences bought. Fewer platforms and services,
operated under SaaS, will enable efficiencies across the current range of licences
due to rationalisation of the IT estate.
Continuous improvement and productivity
2.134 HMRC will bring the functions of its Executive Agency, the Valuation Office
Agency (VOA), within HMRC by the end of 2025-26, resulting in 5% to 10% of
additional savings against VOA administrative costs by 2028-29.
2.135 The Unity Programme seeks to implement a shared service platform for
procurement, HR and finance and will generate both cash-releasing efficiencies,
as well as productivity gains. The modern HR, procurement and finance system
includes data analytics and dashboard capability that reduces manual data
manipulation and presentation requirements across HMRC, enabling faster
insight and a focus on higher value activities. Further work to review processes
across recruitment, learning and organisational design will identify shadow
functions, duplication in processes, and streamlining opportunities.
Estates
2.136 HMRC is reducing its estate in central London by 25% and will continue the
implementation of its Locations Programme, which has reduced the number of
office locations, and opened award-winning regional centres. These offices are
cheaper to run than their legacy counterparts, and offer opportunities to sublet
space to other government departments. Opportunities to streamline facilities
management contracts generate additional efficiencies. In 2030, 85% of HMRC’s
staff will be based outside London.
Upstream compliance
2.137 HMRC will generate productivity improvements across compliance
activities by investing in case management tools, automation and by providing
new channels for customers to self-serve. It will link systems end-to-end to reduce
staff time spent on re-entering data and back-office support.

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HM Treasury
Table 2.16: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
£ million 2026-27 2027-28 2028-29
AI and automation 0 3 6
Non-pay spend 2 2 4
Arm’s-length bodies 3 3 3
Total efficiencies net of investment 5 8 13
Total efficiencies net of investment (%) 1.1% 2.0% 3.0%
Memo: total gross efficiencies 12 17 24
Memo: total gross efficiencies (%) 2.8% 4.1% 5.7%
2.138 HM Treasury (HMT) is the government’s economic and finance ministry,
setting the direction of the UK’s economic and fiscal policy and working to
achieve strong and sustainable economic growth. HMT is supported by 16
agencies and public bodies and plans to spend £0.4bn RDEL (excluding ODA) in
2025-26, the baseline against which efficiency plans are calculated.
2.139 HMT will deliver efficiency gains of £13m per year by 2028-29 through:
• AI and automation - embedding AI into the department’s work across policy
roles and utilising it to deliver effective operational transformation;
• bearing down on non-pay related spend – including estates, legal and
technology spend, ensuring HMT embeds a cost-conscious culture; and
• action in its ALBs – including from consolidating shared services, and other
technology and workforce changes.
AI and automation
2.140 HMT is investing in digital and AI tools that automate processes, enable
new ways of working and unlock productivity. HMT will bring together a new
Digital and Data Function within the department to drive greater tech adoption,
implement new digital-first solutions, improve governance and technical
oversight and improve specialist career pathways.
2.141 On correspondence, the department is developing further AI to automate
case allocation processes and use standard lines to produce draft responses. This
will allow central resources to be scaled back, as well as enabling time savings.
2.142 The Office for Financial Sanctions Implementation (OFSI) will improve their
operational processes, including through a more modern case management
system, which will utilise the latest technology, such as AI, to speed up casework
processing and drive efficiencies. Investment in new technology will improve how
OFSI analyses data to inform proactive sanctions enforcement and enhance
OFSI’s online presence to provide a better, more efficient, user experience.

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Non-pay spend
2.143 The department will continue to actively manage its estates. In 2025-26 the
National Infrastructure and Service Transformation Authority (NISTA) was
established within the department and is accommodated in existing space,
saving £1m per year. Over the SR period, and subject to negotiation with the
Government Property Agency, HMT will reduce its London footprint, delivering up
to £1.5m of efficiencies per year by 2028-29. It will also transition to digital-only files
and reduce its external legal support, using more in-house expertise.
2.144 HMT is embedding a stronger cost-conscious culture throughout the
department, driven by internal communications and engagement, training, and
strengthening existing policies. Increased controls will be implemented around
Government Procurement Cards, travel and learning as well as rationalising
licences and subscriptions. HMT aims to continuously drive improved financial
management, for example by implementing a new approval gateway for
technology and investment business cases.
Arm’s-length body efficiencies
2.145 HMT’s ALBs will drive efficiencies to live within their budgets. Specifically:
• National Wealth Fund (NWF) – the use of AI tools to aid individual and team
productivity. Copilot is currently in proof of concept, but early metrics indicate
this will save time on end-to-end tasks as well as support administrative
processes. The NWF has already identified £1.5m efficiencies through the
utilisation of AI and process reviews.
• UK Government Investments (UKGI) is moving to an activity based costing
model, ensuring prioritisation of areas where it provides most value to
departments, driving efficiency – including through the optimisation of team
size and grade structures, disincentivising work on lower value areas, and
providing clear lines of accountability to Parliament on UKGI’s funding.
Changes to HMT’s operating model
2.146 The department’s SR settlement of a 10% real terms reduction to admin by
2028-29 means it will need to get smaller. To help deliver this, HMT will reduce
resource in some areas. This will be informed by work through the zero-based
review including in reviewing the relative roles and responsibilities of HMT versus
other departments. The department will also introduce a more flexible resourcing
model, to move resource more efficiently in line with ministerial priorities.
2.147 NISTA brought together the National Infrastructure Commission (NIC) and
the Infrastructure Projects Authority (IPA) within HMT. Effective from 1 April, this
has meant the abolition of one of HMT’s ALBs and the department will seek to
realise efficiencies through this merger.

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Cabinet Office
Table 2.17: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation
£ million 2026-271 2027-28 2028-29
Shared services, workforce and digital reform 8 16 18
Corporate services efficiencies 0 0 7
Estates and location 12 12 12
Procurement 0 1 3
Total efficiencies net of investment 20 29 40
Total efficiencies net of investment (%) 2.4% 3.5% 4.7%
Memo: total gross efficiencies 20 29 40
Memo: total gross efficiencies (%) 2.4% 3.5% 4.7%
1investment costs incurred in 2025-26
2.148 Cabinet Office (CO) is responsible for supporting the Prime Minister and
ensuring the effective running of the government. It is the corporate
headquarters for the government, in partnership with HM Treasury, and takes the
lead in certain critical policy areas. It is supported by 12 public bodies and plans to
spend £0.8bn RDEL in 2025-26, the baseline year against which efficiency gains
are calculated.
2.149 CO will deliver efficiency gains of £40m per year by 2028-29 through:
• workforce and digital reform – updating shared services, optimising
management structures, consolidating and driving efficiencies across
corporate services, digital consolidation and the adoption of AI;
• estates and location – by sharing estates with other departments and
reducing running costs; and
• procurement – renegotiating commercial contracts.
Shared services, workforce and digital reform
2.150 As part of the cross-government shared services programme CO will, along
with other departments join a new Matrix shared services model in summer 2026.
This will create the opportunity for increased efficiency by standardising processes
and data, resulting in the delivery of finance and HR efficiencies of £18m per year
by 2028-29.
2.151 CO will rationalise one-to-one line management relationships, through an
organisational re-structure. By widening the spans of control, the department
aims to enhance operational efficiency and reduce managerial overheads leading
to benefits of £5m per year by 2028-29. This move also allows work to be
performed at the right level, reduces silos and facilitates greater resource
flexibility. This will lead to cash-releasing efficiencies from the potential reduction
of workforce.

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2.152 CO is committed to empowering staff with AI tools to enhance efficiency
and deliver significant operational and productivity gains. The department will
invest resulting time savings, building upon its established AI adoption strategy.
2.153 CO will develop a new operating model that includes moving all digital
teams and associated digital tools and platforms into the centre of the
department. This will generate people and commercial efficiency gains through
reducing headcount and contingent labour, as well as reducing duplication of
contracts, platforms and services. This will deliver efficiency gains of £3m per year
by 2028-29.
Corporate services efficiencies
2.154 CO will consolidate corporate services to drive efficiencies in finance, HR
and business management through consolidation, simplification and process
improvement. This will deliver at least £7m in efficiency gains per year by 2028-29.
Estates and location
2.155 A draft CO locations strategy was set out in 2024-25 aiming to realise
efficiencies from consolidating the current estate. This includes an expectation
that 50% of Senior Civil Service roles will be based outside London by 2030.
Efficiencies will be realised through enabling the sharing of estates with other
departments, driving quality and sustainability by implementing Places for
Growth and Plan for London goals and reducing operating costs. CO plans to
move roles from Westminster to Canary Wharf in outer London where estates
costs are half that of the buildings in Westminster. Taken together these will
deliver £12m of efficiency gains by 2028-29.
Procurement
2.156 There are opportunities for efficiency gains in renegotiating commercial
contracts. This will be achieved through better specification and requirement
setting, competitive sourcing, contract management, benchmarking and
demand management. This will deliver efficiency gains of £3m per year by 2028-
29.

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Small departments
Table 2.18: Net efficiency gains vs 2025-26 planned RDEL excluding
depreciation and ODA
2025-26 RDEL
budget (£m) 2026-27 2027-28 2028-29
Scotland Office 16 0.7% 1.3% 2.0%
Northern Ireland Office 63 4.6% 4.7% 4.7%
Wales Office 6 0.7% 1.3% 2.0%
National Savings and
Investments1 2012 1.0% 1.1% 1.1%
Charity Commission 30 2.1% 2.5% 2.8%
Competition and Markets
Authority 137 0.6% 2.6% 5.4%
UK Statistics Authority 365 1.1% 2.4% 5.0%
HM Land Registry 463 1.0% 2.3% 3.6%
Office for Standards in
Education, Children’s
Services and Skills
140 1.0% 2.0% 3.6%
Office of Qualifications
and Examinations
Regulation
29 5.1% 5.1% 5.1%
Food Standards Agency 117 1.1% 2.0% 3.0%
The National Archives 42 1.0% 2.0% 5.6%
UK Supreme Court 9 3.7% 3.7% 3.7%
Law Officers’
Departments3 1,027 1.6% 2.6% 3.0%
Security and Intelligence
Agencies3 3,043 3.5% 5.2% 6.7%
1NS&I technical efficiencies exclude those that are expected to materialise from NS&I's
transformation programme.
2Reflective of published NS&I running costs for 2028-29; the expected post-transformation
date.
3LODs and SIA are considered under the small and independent body framework for efficiency
analysis.

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HM Treasury contacts
This document can be downloaded from www.gov.uk
If you require this information in an alternative format or have general
enquiries about HM Treasury and its work, contact:
Correspondence Team
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Tel: 020 7270 5000
Email: public.enquiries@hmtreasury.gov.uk

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