Whitehall 'hooked' on using consultants, MP warns

COMMENTING ON the Commons public accounts committee’s report on the Government’s use of consultants and interims, South Norfolk MP Richard Bacon, a member of the committee, said:

“Departments spent over £1 billion on consultants and interims in 2009-10, but few departments know for certain whether they got value for money from this spending and some departments appear to be hooked on using consultants. 

“For well over a decade, Whitehall has known that it is weak in the areas of project management and computer skills, yet departments are still relying too much on consultants for advice in these areas.  Whitehall needs to get in-house more of its own skilled people.

“However, in weaning themselves off quite so much consultancy advice, departments should also beware a ‘cold turkey’ approach, like the Department of Health’s determination to cut spending on consultants by 95 per cent by 2010-11.  Unless government departments are very careful, this may simply herald a boom-time for consultants later if the skills required are not put in place in-house. 

“Consultants are an expensive resource so they must be used with great care if the Government is to achieve value for money.  Departments need to work much harder to identify and fill key skills gaps in their workforce before buying in consultancy advice”

21 December 2010