'Invest to Save' is a good scheme which could be even better – says National Assembly Committee

26 March 2013

A National Assembly for Wales Committee is calling on the Welsh Government to further develop its Invest to Save scheme.

The scheme, which was set up in 2009, allows public sector organisations to borrow money from the Welsh Government to invest in cost-saving programmes. The objective of the scheme is to save money in specific areas of the organisation and repay the loan to the Welsh Government which could use it to fund further schemes.

The National Assembly’s Finance Committee learned of a number of positive examples of how Invest to Save had assisted health services, local authorities and education bodies to deliver significant savings.

However the Committee disagreed with the some of the recommendations contained within the Welsh Government’s own evaluation of the scheme.

Concerns were raised about the proposal to offer themed rounds of funding which the Committee concluded would restrict some organisations.

It also recommends the Welsh Government overturn its recent decision to double the Invest to Save minimum threshold to £200,000 – and return to the original £100,000 threshold. Evidence received by the Committee demonstrated that some of the successful schemes which qualified under the previous amount would not have done so under the current arrangement, meaning substantial savings might not have occurred.

“The Committee recognises the significant savings made so far through the Welsh Government’s Invest to Save scheme,” said Jocelyn Davies AM, Chair of the Finance Committee.

“The evidence we have heard demonstrate that public sector organisations are making intelligent and imaginative use of the funding to deliver more efficient, streamlined services.

“But we disagree with recommendations which the Welsh Government is considering regarding themed rounds of funding and doubling the threshold amount to be loaned as we consider this could mean worthy and effective schemes missing out.

“We also believe that the Welsh Government should do more to share the experiences it has gained through Invest to Save, as it could be a model for other governments across the UK.”

The Committee makes nine recommendations in its report including:

• We were not convinced that the benefits of themed bidding rounds, and given that the invest to save pot is finite, we recommend that bidding rounds continue to support the best bids, irrespective of content;

• The threshold be returned to £100,000 to ensure that projects with the potential to make significant savings are not lost to the system; and,

• The Welsh Government continues to promote case studies, encourage institutions to emulate successful schemes, and to champion invest to save through the Public Sector Leadership Group.

Link to more information on the Finance Committee

Link to more information on the Invest to Save inquiry