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Drug supply cost-cutting drive hailed

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The architect of a UK government cost-cutting drive that includes renegotiation of deals with drug suppliers has insisted it has been broadly successful – despite many critics claiming someof the savings were a “sham”.

Sir Peter Gershon said he was “proud” that his public-sector efficiencyplans had delivered “real benefits” for thetaxpayer.

But he did accept that there was still far more scope for eradicating waste in Civil Service and central government spending.

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Sir Peter – who launched measures to save some £23bn over three years in 2004 – said: “I think you have to see what has happened over the past three years as part of a much larger plan to tackle the efficiency of the public sector, which has been emphasised by the tightening public finances situation, which is always a good set of circumstances to cause Government to look carefully at efficiency.”

He highlighted the renegotiation of the NHS’s deals with pharmaceutical suppliers as a move which had saved the public purse £1.2bn over three years.

“That is non-negligible and that is a real benefit to the taxpayer and everyone,” he added.

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