Government expects to beat efficiency target

LONDON (Reuters) - The government can save more money through efficiency cuts in the public sector than originally planned, a Treasury minister said on Thursday, potentially creating more leeway to support the economy.

Labour had originally targeted 30 billion pounds in efficiency savings between 2007 and 2010, but now believes more money can be saved from areas such as procurement, asset management and corporate services.

"We want to see savings in each of these areas help us to go further than our current 30 billion pounds efficiency plans, and help support big improvements in the next spending review," Chief Secretary to the Treasury Yvette Cooper will tell an audience in London, according to the text of her speech.

"On Monday, the Chancellor will report on the interim findings from the (efficiency) review and set out how much further we believe we can go and how efficiency savings can be used to support our priorities."

Darling delivers his second pre-budget report to parliament on November 24, with speculation growing that the government will cut taxes to help prop up the economy which is fast sliding into its first recession since the early 1990s.

The government has faced criticism for signalling it will suspend limits on borrowing to make room for growth-boosting measures, but ministers may now argue that further efficiency savings will help cushion the blow on the public finances.

(Reporting by Matt Falloon)