Chancellor Takes Aim at Consultants' Costs
Rachel Reeves is leading a charge against wasteful spending in Whitehall to free up funds for her upcoming Autumn Budget. The Chancellor is appalled by the hefty expenses on consultants instead of utilizing in-house government officials.
Pledge to Tackle Fraud and Error
Besides targeting consultant costs, Ms. Reeves has promised to address the £8 billion lost annually to fraud and error, along with individuals taking advantage of loopholes in the tax system. During her visit to the US to attract investments, she emphasized the importance of recovering taxpayer money before making tough decisions on expenditures.
Labour's Cost-Cutting Plan
Labour had previously committed to saving £750 million per year on consultant fees and reducing spending on external assistance by half. Recent data reveals that the UK public sector awarded £2.8 billion in consultant contracts in 2022, including assignments related to Covid-19.
Questioning the Justification of Expenditure
Expressing her concerns, Ms. Reeves highlighted instances where departments opt for expensive consultancy services instead of utilizing the skills of in-house talent. She stressed the importance of leveraging the capabilities of the civil service, which recruits top graduates and apprentices annually, rather than outsourcing significant projects.
