FTP £8m. off target
Friday 21st December 2012, 12:00PM GMT.
A COST-CUTTING drive by the States that is key to eliminating the deficit and preventing tax rises is nearly £8m. off target.
Known as the Financial Transformation Programme, it had been expected to deliver £18.5m. of recurring savings by the end of last month, but instead had hit just £10.8m.
The Policy Council produced the original forecast, but now blames the approach taken from the outset for the shortfall.
‘There was a lack of ownership and departments felt that it was being imposed on them from the centre,’ Chief Minister Peter Harwood, pictured, said in a progress report released today.
He added that ‘the approach created a perverse incentive to delay delivery in order to postpone any budget reductions’.