Consultants set to lose $3 billion in UK government work under plans to halve advice spending

Stay informed with free updates

Just sign up for myFT Digest, an accounting and consulting service delivered straight to your inbox.

Consulting firms risk losing billions of pounds in lucrative government work after both the Conservatives and Labor pledged to halve UK government spending on external advisory firms.

Both major political parties this week released manifestos to reduce reliance on consultants in the next parliament, a move expected to save around $3 billion over five years.

Government use of consultants has risen to record levels since the last election, driven by demand for emergency planning, digital transformation projects and civil servant training during the COVID-19 pandemic.

Figures from data group Tussell show that eight companies – Deloitte, EY, KPMG, PwC, McKinsey, BCG, Bain and Accenture – have awarded 7.1 billion public sector contracts since December 2019.

Critics, including parliament's Public Accounts Committee, warn that the government's reliance on consultants wastes money and prevents British civil servants from developing valuable skills in-house.

Lord Theodore Agnew, then a UK government minister, said in 2020 that unacceptable over-reliance on advisers wastes taxpayers' money and infantilizes civil servants.

This week Labor leader Sir Keir Starmer and Chancellor Rishi Sunak pledged to cut spending on consultants to find cash to fund manifesto promises against uncertain economic times.

Labor, which is well ahead in the polls, estimates it could save $745 million a year, or $3.73 billion over five years, by halving spending on consultants, which it estimates will be used to improve frontline service delivery and the public sector. It was announced that capabilities would be redistributed based on priority.

Labor's moves are expected to generate net savings of $3.04 billion by the end of 2029, according to calculations by the Cabinet Office commissioned by the Conservatives.

The Conservatives also said they would halve spending on external advisers and introduce controls on all equality, diversity and inclusion initiatives and spending.

The party also wants to return the civil service to its pre-pandemic size, which would mean cutting nearly 90,000 roles, according to the Institute of Government.

To be more economical, we could say that we could save $3 billion by cutting back on consultants, but then we would have to replace those consultants with other consultants. [civil servants]said a veteran public sector consultant at a global advisory firm.

It may be seen as more efficient, but it is more effective otherwise. Productivity, performance and efficiency will suffer significantly.

The British government has previously made efforts to reduce the use of advisors within Whitehall, including creating an in-house consulting department in the last parliament.

Crown Consultancy, with the support of former Downing Street adviser Dominic Cummings, was supposed to cut government spending on private companies. But the project was scrapped last year after officials acknowledged it was not working and preferred to use outside advice.

High spending since the last election has helped consulting firms, with Deloitte securing $1.9 billion worth of contracts during the period, Tussell data showed. Big 4 competitors KPMG, EY, and PwC recorded 1.3 billion, 1.03 billion, and 1 billion, respectively.

Because many projects span multiple years and the Tussell data sometimes includes project contracts, such as IT upgrades, that the government does not classify as consulting expenditures, actual expenditures are typically lower than the value of the awarded contracts.

The consulting industry argues that it is more cost-effective to attract short-term project consulting firms through competitive bidding rather than hiring full-time experts from government departments.

The next government will face a complex set of challenges of unprecedented scale and will continue to need the best private sector expertise to deliver better frontline services to taxpayers, said Tamzen Isaacson of the Management Consultancy Association. Isaacsson, CEO said.

Sources 1/ https://Google.com/ 2/ https://www.ft.com/content/81682cbd-4e74-4db7-b72e-63d65200b113 The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos