Blair spends record amount on consultants
Labour government adds 1p to income tax in record spend on private consultants despite efficiency drive and cuts in public sector jobs and services
Labour government adds 1p to income tax in record spend on private consultants despite efficiency drive and cuts in public sector jobs and services
Government spending on consultants has rocketed to £2.5bn at the same time as
Whitehall tries to cut 84,000 civil service jobs and £20bn in the public sector
in line with the Gershon efficiency review.
Figures from the Office of Government Commerce showed that spending on
management consultants increased by 42% last year from £1.76bn in 2003-04 to
£2.5bn, the equivalent of a penny in the pound on income tax.
The Times said this was as much as it would cost to build 150 new
hospitals or employ more than 100,000 nurses or 75,000 policemen.
An increasing number of consultancies have switched their focus to public
sector contracts, which can attract daily fees of up to £2,000. Firms are being
hired to advise on outsourcing, change and transformation management, IT system
implementation, advertising and communications and to conduct polls and surveys.
The paper said that the NHS, which spent £85m on consultancy work last year,
was up 235%; defence, up 77% at £148m; work and pensions £345m; and transport
£328m. It added that local government paid consultants more than £230m, almost
four times as much as in 2004.
The numbers you crunch tell a story. Your expertis...
19yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleAs we get closer to the Budget and there is talk of public spending reduction to fund his proposals, we think a cut by the Chancellor to the headline ...
View articleTechnology industry leaders are pressing the government for substantial investment to prepare the next generation with essential digital and AI skills...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleEffective corporate reporting on sustainability will prevent greenwashing issues and deliver more data for better implementation of climate policies R...
View articleCGT receipts have increased by over 100% in the past five years and reached a record level of £18bn in the last year alone, and a further 18% increase...
View articleThe Office for National Statistics reported that inflation in the UK dropped to 7.9% in June Read More...
View articleAccording to the senior Conservative, the Tory party must have one eye on the next general election in deciding the future of the off-payroll working ...
View article23% of business owners having hastened their plans to either sell or wind down their businesses Read More...
View article