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£60bn public sector waste

27th November 2009

The Conservative's shadow Treasury minister Philip Hammond will tell the Policy Exchange think tank that £60 billion is wasted annually in the public sector.

Pound Sign

He will propose that departments are stripped off their property collections and that government property is managed centrally.

The Tories want to see the establishment of asset management companies which are publicly owned and manage property owned by the government.

Mr Hammond also wants to see a government board set up to advise on productivity.

His speech is being promoted as an important one which will expand on the proposals set out by the shadow chancellor George Osborne at the Conservative Party conference in October.

He will argue that while the private sector increased its productivity in the ten years following 1997, the public sector failed to follow suit and declined by 3.4%.

He will say: "We have modelled what would have happened if the public sector of our economy had delivered the same productivity performance as the private service sector in each year of that decade."

"The result is startling: we would today be enjoying the same quality and quantity of public services - with a saving to the taxpayer of some £60bn per year."

He will add that the billions lost every year are due to Labour failing to deliver on promises to change the public sector.

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