Gershon Report: Further Information

In his report issued in July 2004, Sir Peter Gershon laid out a vision which specifically focused upon the objective of releasing major resources from activities that could be undertaken more efficiently into those front line services that meet the public's highest priorities.

Gershon describes efficiency as those reforms to delivery processes and resource utilisation that achieve:

1. Reduced numbers of inputs (e.g. people or assets), whilst maintaining the same level of service provision;
2. Lower prices for the resources needed to provide public services;
3. Additional outputs, such as enhanced quality or quantity of service, for the same level of inputs;
4. Improved ratios of output per unit cost of input;
5. Changing the balance between different outputs aimed at delivering a similar overall objective in a way which achieves a greater overall output for the same inputs ("allocative efficiency").

A target was set based on increasing efficiency to deliver £20 billion of annual efficiency gains by 2007-08, through a 2.5 per cent a year efficiency target for the whole public sector.

To view the full report please click here.