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Spending on mental health accounts for around ten per cent of the overall health budget and so the mental health sector has a key role in responding to this challenge. The King’s Fund and Centre for Mental Health, with the support of the Royal College of Psychiatrists and the NHS Confederation’s Mental Health Network, have worked together to explore how mental health services could be delivered in a different and more cost-effective way. The consensus from their work, including an expert seminar and a review of evidence, is that there is scope for mental health services not only to improve their own productivity but also to support productivity improvements in other parts of the NHS. 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Of the improvement areas highlighted in the report, we consider that the following are the most promising targets for immediate attention: reducing unnecessary bed use in acute and secure psychiatric wards, establishing systems to review the use of highly expensive out-of-area treatments, improving workforce productivity, strengthening the interface between mental and physical health care, particularly for older people and people with long-term conditions. 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