The UK government has announced new controls on the public procurement of consultancy services by government bodies. The new restrictions are being introduced to cut “unnecessary spending” on consultancies in order to save the government £1.2 billion by 2026. Departments are already expected to save the £550 million committed to this financial year.
More oversight, less spend
The new controls, according to a government press release, will provide more oversight for any consultancy spend over £600,000. They will also affect contracts lasting more than nine months. Ministerial signatures will be required for such projects to go forward. Additionally, spending over £100,000, or lasting more than three months, will now require a signature by the relevant permanent secretary.
When combined with commercial agreements that are focused on value for money, the government expects these controls to drive a reduction in consultancy spend in Whitehall.
“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,” commented Georgia Gould, Parliamentary Secretary at the Cabinet Office. She added that the restrictions are part of the governments work to” make the Civil Service more efficient and effective.” She also hailed the government’s efforts to take “bold measures to improve skills and harness digital technology.”
New framework agreement bidding announced
In conjunction with its announcement, the government has also invited companies to bid for a new framework agreement. The agreement’s purposeis to streamline the way the government uses consultants in the years to come.
The goal is to create a single, centralised list of suppliers. These organisations, will have already been through a rigorous and competitive tendering process to gain a place on the agreement. As such, it will cut down the time spent by departments on the procurement process. Ultimately, the government believ es this will ensure better value for money and more competitive prices.
In line with its commitment to cut consultancy spend, plans are already in place to dramatically cut the framework’s value. The framework’s total value will fall, 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.
“Consultancy services are sometimes needed to support government to deliver for citizens, but taxpayers must get value for money,” said Sam Ulyatt, CEO of Crown Commercial Service.
“This agreement will help to ensure a behavioural and cultural change of how consultancy is procured throughout the UK public sector.”
