Commenting on the publication of the National Audit Office’s report on central government’s cash management, South Norfolk MP Richard Bacon, a member of the Commons public accounts committee, said:
“It is estimated that £4 billion of taxpayers’ money is currently sitting in commercial bank accounts when it could have been left in the Exchequer, where it could have helped reduce the level of government borrowing.
“Simply keeping this cash in the Exchequer could potentially have saved taxpayers £28 million.
“The government also needs to improve its forecasting of cash requirements. The government as a whole under-forecast and over-forecast its cash requirements by an average of £63 million a day, which represents four per cent of the Government’s net spending.
“The aim of good cash management is to have the right amount of cash available at the right time, in a cost-effective way. However, Whitehall is not doing enough to improve the day-to-day management of its cash flow. Government departments need to keep as much money as possible in the Exchequer and improve their financial forecasting as a matter of urgency”.
16 October 2009
See also:
NAO REPORT:
Progress in tackling benefit fraud
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