Hub to cut back government spending on external staff

The new Government Consulting Hub has been launched to boost internal expertise across government, saving the taxpayer money.

Based on Glasgow, Birmingham and London, the new hub will upskill civil servants, reducing the reliance on external consultancy firms. It forms part of the Cabinet Office and will work across all departments to reduce consultancy spend by using internal civil service resources, rather than hiring external staff. In 2019/20, central government spend on external consultants was more than £700 million.

The Cabinet Office is also tightening up rules on consultancy spend, with departments required to submit for approval consultancy and professional services spend over £500,000. Currently the spend threshold which requires central approval is £10 million.

Cabinet Office Minister, Lord Agnew, said: “I want government to rely on and invest in the talent which I know the Civil Service already has. The Government Consulting Hub will improve the skills of our civil servants, make sure that where consultants are still needed, we get the best value for money and guarantee that government departments work together to get the best results. This is not just about saving money; it’s a real opportunity to guarantee that taxpayers get value for money.”

The Government Consulting Hub has been running as part of a pilot programme within the Cabinet Office for the past three months.