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GLOSSARY

Efficiency definition

What does Efficiency mean?

The relationship between the outputs from a service and the resources used to produce them; in the public sector, it involves making best use of the resources available for the provision of public services.

Efficiency is one of the 'three Es' that underpin the Best Value duty, alongside economy and effectiveness. The Gershon Review (2004) looked at the scope for efficiency savings across all public expenditure; it was followed in 2008 by the Operational Efficiency Programme that examined operational spending in the public sector and identified a total of £15bn annual savings from back office operations and IT, collaborative procurement, asset management and sales, property and local incentives and empowerment.

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