New controls on the use of consultancies across government are
being brought in to cut unnecessary spending and save £1.2
billion by 2026, as set out in the Autumn Statement – with
departments already expected to save the £550 million committed
to this financial year.
The new controls will provide far greater oversight, with
ministerial signoff required for any consultancy spend over
£600,000, or for contracts lasting more than nine months, while
consultancy spend over £100,000, or that lasts more than three
months, will now need to be signed off by the
relevant permanent secretary.
When combined with commercial agreements that are focused on
value for money, these controls will drive a reduction in
consultancy spend in Whitehall.
, 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.
To support this, the government is also inviting companies to bid
for a new framework agreement which will streamline the way it
uses consultants in the years to come.
By providing a single, centralised list of suppliers who
have already been through a rigorous and competitive tendering
process in order to gain a place on the agreement, it will cut
down the time spent by departments on the procurement process,
and ultimately ensure better value for money and more competitive
prices.
In line with this government's commitment to cut consultancy
spend, the framework's total value has been cut from £5.7 billion
over four years as planned to £1.7 billion over two years.
The new agreement will be managed by the Crown Commercial
Service (CCS), the UK's biggest public procurement organisation
and an executive agency of the Cabinet Office, which will play a
coordinating role in consolidating the government's consultancy
spend as it delivers change for working people.
Sam Ulyatt, CEO of Crown Commercial Service
said:
Consultancy services are sometimes needed to support Government
to deliver for citizens, but taxpayers must get value for
money.
This agreement will help to ensure a behavioural and cultural
change of how consultancy is procured throughout the UK public
sector.
It will also provide SMEs with further opportunities to win
public sector contracts which allow them to bid as part
of consortiums, or as a subcontractor.
CCS has developed the agreement in consultation with departments
to ensure that it can best meet their needs. Some of
these improvements include expanding the use of alternative fee
arrangements, which are linked to supplier performance, to ensure
value for money for customers and the taxpayer.
