Central Government's Use of Consultants and Interims
The Stationery Office, Oct 1, 2010 - Political Science - 30 pages
This report, which focuses on 17 central government departments, finds that in 2009-10, these departments spent over £1 billion on consultants and interim managers (temporary replacements for permanent staff). The departments spent approximately £904 million on consultants in 2006-07. Spending on consultants fell by £126 million in 2007-08, but since then has remained broadly constant, totaling £789 million in 2009-10. Some of the fall in spending up to 2009-10 is likely to be due to increased accuracy in the recording of costs rather than improved control by management, suggesting that some of that reduction in spending is not sustainable. Limited and inconsistent progress has been made against recommendations made in previous NAO and Public Accounts Committee reports. The quality of departments' management information on consultants and interims is poor. Few departments can provide information on their spending by type of consultancy, the number of interims employed, or interims' roles and length of contracts. Departments do not always follow best practice when buying and managing consultancy and interims and most do not assess the performance of consultants or whether the work done was of benefit. In May 2010, the government introduced changes to the approval process for consultants and restrictions on recruitment, including interims, and this has helped to challenge their use. However, this is a short term impact and as a longer term strategy it could lead to the displacement of costs elsewhere. It needs to be built upon to deliver a sustainable approach to structured cost reduction
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17 departments achieved approval areas arms length bodies Audit Office survey benchmark across government benefits delivered Cabinet Office Central Government's Collaborative Category Board Comptroller and Auditor Consultancy Category Council consultancy contracts Consultancy Value Programme consultants and interims consultants or interims core skills gaps Department for Culture Department for Transport Department of Health departmental Departments need Energy and Climate ensure evaluate expected value Figure fixed price government on expected gross spending HM Revenue HM Treasury recovered implement improving inform future June management information Ministry of Defence Ministry of Justice NAO and PAC National Audit Office OGC publishes organisations outcomes PAC recommendations PAC report Pensions previous NAO Procurement Expenditure Survey procurement teams Professional Services Category progress Public Sector Procurement rate card re-charging financial institutions resource options Revenue & Customs Sector Procurement Expenditure Services Category Council spending on consultants spending on interims total spending value for money