Ofcom’s 2005/06 Annual Plan states,

“…We are now committed to being an �RPI minus X� regulator and to achieving a five per cent saving during the 2004/05 financial year, with a further five per cent to be saved in 2005/06.

For 2005/06 Ofcom will cost �133m (excluding spend on SES - Spectrum Efficiency Scheme funded by HMT). This is a five per cent saving in nominal terms (around eight per cent in real terms). By setting this level of budget Ofcom will more than meet its commitment to cost reductions for this year.”

Comment: I suspect that year on year it is going to get much more difficult to make savings at Ofcom - we will wait to see if 8% in real terms is possible in 2005/06. On the ground, the regulator’s reach seems to be expanding rather than contracting. In addition, Ofcom may have started with something of a ‘cushion’ of funds making it easier to shrink in real terms in the early years.

But neither of these points need take away from the fact that Stephen Carter (and the senior team) have done a rather impressive job in terms of organisational structure and management, and have made the savings that they said they would. Pulling all this together was unlikely to have been easy - so credit where credit is due.

Of course, this may all look a little different if you actually work (at a junior or mid-tier grade) inside Ofcom - how does it feel to be ambitious in a shrinking organisation? Is downsizing focused in the right areas? Are the savings possible for 2005/06? Got an opinion, get a voice. Drop us a line - blog@ofcomwatch.co.uk