The government is unlikely to meet its £35 billion spending reduction deadline next year, with departments lacking the proper data to measure the cuts, according to the National Audit Office.

The news follows an NAO report last week that found the Ministry of Defence was struggling to cut the costs of its vast estate because it lacked centralised data.

The £35 billion target was set by the former Labour government in 2007, as part of the Comprehensive Spending Review.

The NAO investigated five large departments due to deliver £2.8 billion of the savings. It found that while 38 per cent of individual savings targets were sustainable, 44 per cent were uncertain, and 18 per cent “significantly overstate” realistic savings potential.

Problems include a lack of centralised data, difficulties demonstrating links between savings and performance, unsuitable baselines for measurement, and a lack of transparency over reporting.

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