Title: The Cost of Consultants: A Scandalous £3.4 Billion Drain on Public Funds
A recent report by outsourcing data company Tussell has revealed that public bodies paid private consultants a staggering £3.4 billion last year. Government spending on consultants surged to £1.3 billion higher in 2023-24 compared to 2019-20, with the figure failing to return to pre-pandemic levels post-Covid.
The significant increase in consultant expenditure poses a challenge for Keir Starmer’s government, which aims to cut consultant spending by half during its term. Despite this goal, new government contracts worth nearly £650 million have been awarded to consultants, perpetuating a cycle of dependency on external expertise.
Experts like economist Mariana Mazzucato criticize the government’s reliance on consultants as “parasitic,” emphasizing the need for investment in in-house expertise. The “big four” consulting firms – KPMG, Deloitte, PricewaterhouseCoopers, and EY – received close to £900 million in 2023-24 alone.
The exorbitant costs of consultancy services have prompted calls for immediate action to curb unnecessary spending and build a more efficient civil service. With a plan to save millions in the coming years, the government aims to address the overreliance on consultants and prioritize long-term solutions for the public sector.
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