Deliver more for less, Ministers urged

Mr Osborne announced in last month’s Autumn Statement that he will conduct a departmental spending review for 2015/16 during the first half of 2013, and that only health, schools and overseas development aid will be protected from cuts.

Total departmental expenditure limits for day-to-day spending are due to fall from £322.4 billion this year to £318.7 billion in 2015/16, and the Spending Review will determine how the pain will be shared between the “unprotected” departments including defence, transport, energy and the Home Office.

Yesterday, Mr Osborne advised Cabinet colleagues to ensure that their departments engage with the Treasury and the Cabinet Office Efficiency and Reform Group as the budget-setting process gets under way over the coming weeks.

Ministers were told to show how they can deliver “more for less” by reforming the way they work, and to look hard for opportunities to save money by collaborating with other departments, sharing services such as IT or personnel and making better use of buildings.

Prime Minister David Cameron’s official spokesman said: “It is a process of as far as possible looking to see how we can reform public services and back-office services and functions so we can achieve more with less.”