Whitehall is failing to identify how departments can make further spending cuts and is not effectively monitoring progress being made, according to a new report by the Public Accounts Committee.

The report - which examines the progress made in reducing costs by central government departments - found that most had achieved a 2.3% cut in spending in the first year following the 2010 Spending Review. However, the study states a reduction of 19% is still needed over the next four years if the Government is to achieve its broader cuts target – something departments will find 'difficult' to achieve.