Government to examine quangos for potential closure

The government has announced plans to examine every quango across government with a view to close, merge or bring functions back into departments if continued existence cannot be justified.

The review has been commissioned by the Cabinet Office, at the request of the Chancellor of the Duchy of Lancaster. It is part of plans to 're-wire' Whitehall and create a more productive and agile state.

The news follows the announcement that NHS England will be brought back into the Department of Health and Social Care (DHSC).

Following the review, it is expected that quangos with large policy functions could be brought back into departments, bringing ministerial, elected, scrutiny back to major decisions that affect the public - this would also retain the expertise and experience of staff working in these areas.

According to the government, 'all departments must demonstrate the necessity of each one, operating under the presumption that these bodies will be affected unless there is compelling justification for their separate existence'.

Where independence from Ministerial decision making is essential, such as quangos which scrutinise government or protect the rule of law, then these will remain unaffected.

The review will consider four key principles, the first being ministerial policy oversight - if a policy is of national importance then Ministers should have appropriate oversight and control of its development.

The second principle will consider duplication and efficiency, with the aim to drive them out wherever possible.

The third principle will focus on stakeholder management, considering that the fact that government needs to engage stakeholders should not be a reason for an ALB to exist.

The final principle will consider independent advice, where there is clear justification for independent advice, this should be conducted at arm's length.

Chancellor of the Duchy of Lancaster, Pat McFadden MP said: "We are taking action to ensure decisions of national importance that affect everyone in this country are made by those who have been elected to do so.

"Only by fundamentally re-wiring the state, can we deliver our Plan for Change to secure Britain’s future and serve working people; kick-starting economic growth, rebuilding the NHS and strengthening our borders.

"The review will aim to drive out waste and inefficiency across Whitehall, reducing duplication and bureaucracy - saving the taxpayer money and cutting the cost of ‘doing government’. "