Brexit & EconomyPoliticsBlair spends record amount on consultants

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

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.

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

3m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter