The Cost Review set out plans to reduce the cost of delivering infrastructure in the UK by £2bn to £3bn a year by 2015. The first annual report says that projected savings of up to £1.5bn have already been identified.
Commercial Secretary to the Treasury Lord Sassoon said: “Every pound saved through this Cost Review programme is a pound more that can be spent on new infrastructure for the UK. This first annual report shows we are on track to deliver the savings we identified last year. What is particularly encouraging is that these savings are being delivered through close and fruitful co-operation between the public and private sectors.”
Examples of savings include: a projected 20% saving (more than £600m) on the 20 major projects being delivered through the Highways Agency’s Managed Motorways and Trunk Road Improvement programme, through managing projects more strategically, and improved supply chain management. London Underground also expects to deliver £400m efficiency savings through improved project management.