The Gershon target could be met a year early as local authorities are on course to deliver expected efficiency gains in 2006/7.
According to statistics revealed by the Department for Communities and Local Government, local authorities are on course to deliver £1.3 billion worth of efficiency gains
The figures show that if the reported gains are delivered, local government is well on its way to meeting the £3 billion Gershon target a year ahead of schedule.
Minister for local government Phil Woolas said: “The figures are significant and show that, if delivered, the Gershon target will be met a year early. This is good news and demonstrates the positive approach taken to efficiency – these savings could be used to improve frontline services for communities or to keep down council tax increases.”
The figures were identified by local authorities in England in their annual forward look efficiency statements.
The statistics compare with savings of £760 million in 2004/5 and £1.1 billion in 2005/6