Regulation 4 Definition of “cumulative efficiency savings” and “cumulative estimated efficiency savings”
Subject to paragraph (3) and regulation 5, an efficiency authority’s cumulative efficiency savings for a financial year are—
if the year before the financial year is the baseline year, the authority’s aggregate savings for the financial year; or
where paragraph (a) does not apply, the aggregate of—
the authority’s aggregate savings for the financial year,
the authority’s aggregate savings for the year after the baseline year (“the post-baseline year”), and
the authority’s aggregate savings for any year which is before the year mentioned in sub-paragraph (i) and after the post-baseline year.
Subject to paragraph (3) and regulation 5, an efficiency authority’s estimated cumulative efficiency savings for a financial year are the authority’s cumulative efficiency savings for the year, but calculated using estimates prepared for the financial year by the authority.
If required by the efficiency document any amount calculated under paragraph (1) or paragraph (2) must be adjusted to take account of inflation.
For the purposes of paragraph (1)—
the baseline year, in relation to an efficiency authority and a financial year, is the year identified as such in the baseline document; and
an authority’s aggregate savings for a year are the aggregate of the authority’s efficiency savings in relation to the services administered by it during that year.
For the purposes of paragraph (4)(b), an authority’s efficiency savings in relation to a service administered by it during a year are the amount of any value for money or efficiency gains calculated for the service and the year in accordance with the efficiency document.