MPs have cast doubt on whether the Cabinet Office's Efficiency and Reform Group (ERG) can help ministers achieve £20bn of efficiency savings from areas of the public sector where it has little or no influence – including local government.

In a report acknowledging the good start made by the ERG since it was set up last year, the Public Accounts Committee (PAC) lauds the group's role overseeing the £6bn emergency Budget cuts and subsequent measures to reduce Whitehall spending by £3.8bn in 2010/11.