Image source: GOV.UK, Open Government Licence v3.0
The Cabinet Office has announced new controls on the use of consultancies across government, aimed at saving £1.2 billion by 2026.
Other aims include reducing reliance on larger companies, supporting SMEs and increasing diversity, innovation and social value.
Among the measures – included in the Autumn Statement – is that ministerial sign-off will be required for any consultancy spend over £600,000 or for contracts lasting more than nine months. Any spend over £100,000 or for contracts exceeding three months will require sign-off by a permanent secretary.
There is also an invitation to companies to bid for places on a new procurement framework to streamline the use of consultants. This will provide a centralised list of suppliers that have gone through a competitive tendering process and reduce the time departments have to spend on procurement.
It will be managed by the Crown Commercial and its total value has been set at £1.7 billion over two years, compared with an earlier provision for £5.7 billion over four years.
Immediate action
Georgia Gould, parliamentary secretary at the Cabinet Office, said: “We’re taking immediate action to stop all non-essential government consultancy spend in 2024-25 and halve government spending on consultancy in future years, saving the taxpayer over £1.2 billion by 2026.
“It comes alongside our work to develop a strategic plan to make the Civil Service more efficient and effective, with bold measures to improve skills and harness digital technology.”
