Defence ministry was only department of seven being monitored that failed to meet its 2013/14 cost reduction target

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The Ministry of Defence has made the least progress in meeting its construction cost reduction targets for this parliament of any government department monitored, government figures released this week show.

Each government department has been set yearly targets to reduce the cost of their construction projects, as part of a public sector-wide drive to cut construction project costs by 20% by the end of this parliament.

All cost reductions are measured against a 2009/10 base year.

The Ministry of Defence (MoD) achieved a 9.3% reduction in construction costs, equivalent to an £8m saving, in the 2013/14 financial year, below its target of a 10% reduction for the year. The MoD was the only department of seven being monitored that failed to meet its 2013/14 cost reduction target.

Three departments – education, transport and local government - hit their cost reduction targets for the parliament a year early in 2013/14, recording reductions of 31.4%, 27.7% and 13.3% respectively, against targets for the parliament of 20%, 17% and 12%.

Across the whole public sector thegovernment saved £840m on the cost of construction projects in 2013/14. The £840m saving was on an expenditure of £3.5bn, representing a 19.6% saving on the base year.

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