WHAT’S that saying? It’s not hard to meet expenses – they’re everywhere.
Our MPs are beginning to understand that with new rules laid down by Chancellor George Osborne and Chief Secretary to the Treasury, David Laws.
The expenses cutting relates to the announcement on how the coalition government intends to make £6.2billion savings. And one of the items under review is the ministerial use of cars; and in a broader sense travel.
Under the heading ‘Luxuries and leadership’ – which I really rather liked – David Laws announced that he wanted to make savings of at least a third in the cost of the Government Car Service. So In future, no Minister should have a dedicated car or driver other than in exceptional circumstances.
More than that, Ministers will be expected to walk or take public transport where possible, or use a pooled car. Mr Laws said the pooling of cars would allow big savings to be made.
And then came the real crunch. Figures for central government departments suggested that £45m had been spent on first class travel in 2008/09. What? How much? Would a small business allow such excess? I don’t think so. And neither, does it appear, do Messrs Osborne and Law.
“We believe that huge savings must be made in this area. Full first class fares are very expensive and should be avoided by all public servants wherever possible,” said Mr Laws.
He then went on to add: “The Chancellor and I will monitor spending in this area and are minded to deduct the costs of any first class travel from the future spending limits of any public sector body which spends its scarce resources in this way.”
That is the sort of thinking that will help reduce our national deficit. Rigorous analysis of all expenditure has helped many small businesses survive the recession. And finding the lowest cost method of travel has been a must – and it’s unlikely to change. Reduce expenditure – and help the bottom line. Let’s hope ministers get the message.
Editor’s note: Since this blog was written, Chief Secretary David Laws has resigned his post.
Business Car Manager: Editor’s Blog
