Government's use of external consultants

Public Accounts Committee Open Inquiry
Opened: 6 May 2025 Parliament page
The current government’s intention is to halve spending on consultants, with a commitment to producing a strategic workforce plan for the civil service in 2025 that can properly balance the use of civil servants and external resources. The National Audit Office (NAO) in 2025 publishes a lessons learned study for … Read more
4 Recommendations
19 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Oral evidence sessions 1 session
Andrew Forzani · Cabinet Office Andrew Forzani · Ministry of Defence Cat Little CB · Cabinet Office Mark Leigh · Department for Energy Security and Net Zero Rebecca Molyneux · HM Treasury
Title HC No. Published Items Response
71st Report - Government’s use of external consultants HC 1521 11 Mar 2026 23 Overdue
Recommendations & Conclusions
23 results
2 Recommendation Accepted
71st Report - Government’s use of …
The Cabinet Office is unable to deliver on its strategic objective to reduce consultancy spend...
The Cabinet Office is unable to deliver on its strategic objective to reduce consultancy spend because departments are not complying with its definitions and directives. The Chief Commercial Officer stated that some departments are not following Government Commercial Function guidance … Read more
Government Response
The Cabinet Office has commissioned the Government Internal Audit Agency (GIAA) to carry out a review of 15 organisations with significant consultancy spending and will write to the Committee with GIAA’s findings and the steps the Cabinet Office will take as a result.
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3 Recommendation Accepted
71st Report - Government’s use of …
The Cabinet Office is unable to demonstrate that the target to halve consultancy spend is...
The Cabinet Office is unable to demonstrate that the target to halve consultancy spend is an effective way to reduce spending on external providers. The Chancellor announced her intention to stop all non- essential spending on consultancy immediately and halve … Read more
Government Response
The Cabinet Office has commissioned departments on their spending on professional services published for 2022-23, 2023-24, and 2024-25 and will provide collated data to the Committee by July 2026.
HM Treasury
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4 Recommendation Accepted
71st Report - Government’s use of …
The Cabinet Office has not provided departments with up-to-date guidance on how to procure, learn...
The Cabinet Office has not provided departments with up-to-date guidance on how to procure, learn from and manage consultancy. The Government Commercial Function (GCF) is responsible for the Consultancy Playbook, as well as the related Sourcing Playbook. The Consultancy Playbook … Read more
Government Response
The Cabinet Office will publish the updated Consultancy Playbook by July 2026, and it will incorporate updated guidance about the use of emerging technologies such as artificial intelligence.
HM Treasury
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5 Recommendation Deferred
71st Report - Government’s use of …
The soon to be released strategic workforce plan has the potential to be a welcome...
The soon to be released strategic workforce plan has the potential to be a welcome step to support better use of consultants. The Cabinet Office told us that all departments are complying with requests to update their strategic workforce plans, … Read more
Government Response
The Cabinet Office intends to publish the Civil Service Strategic Workforce Plan as soon as possible, once the further work on technology and AI has been completed to inform it.
HM Treasury
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1 Conclusion Acknowledged
71st Report - Government’s use of …
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, from HM Treasury, and from the Department for Energy Security and Net Zero, about government departments’ use of external consultants.1
Government Response
The government agrees with the Committee’s recommendation. If a supplier is identified as a top ten supplier in any one of these categories, all other spending with that same supplier in the remaining two categories must also be reported, even if that spending would not otherwise place the supplier in the top ten for those other categories.
HM Treasury
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6 Conclusion
71st Report - Government’s use of …
We questioned whether government has a breakdown of the amount spent on consultancy services in...
We questioned whether government has a breakdown of the amount spent on consultancy services in government with individual consultancy firms, separating audit fees from consultancy work. The Chief Commercial Officer explained they have the total annual spend, broken down by … Read more
HM Treasury
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7 Conclusion
71st Report - Government’s use of …
We asked about the current processes for improving data quality and reducing labour intensive data...
We asked about the current processes for improving data quality and reducing labour intensive data checking processes. The Cabinet Office acknowledged that data processes are not yet as good as they need to be, but that it is investing in … Read more
HM Treasury
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8 Conclusion
71st Report - Government’s use of …
Inconsistent data prevent departments from understanding which consultants they use, or what skills gaps they...
Inconsistent data prevent departments from understanding which consultants they use, or what skills gaps they repeatedly hire consultants to address. Departmental annual reports use different definitions of what constitutes consultancy spending, which may or may not be based on the … Read more
HM Treasury
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9 Conclusion
71st Report - Government’s use of …
We asked the Department why there is no uniform definition for consultancy used across government.
We asked the Department why there is no uniform definition for consultancy used across government. The Chief Commercial Officer explained there is a standard definition for consultants across government, which is published in the Consultancy Playbook, and that the differences … Read more
HM Treasury
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10 Conclusion
71st Report - Government’s use of …
The Department said it plans to ensure compliance by departments with standard definitions through a...
The Department said it plans to ensure compliance by departments with standard definitions through a combination of audit, data and technology improvements, and strengthening its mandate. The Cabinet Office has also established a working group and is seeking advice from … Read more
HM Treasury
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11 Conclusion
71st Report - Government’s use of …
The Chancellor’s July 2024 speech set targets to cut consultancy spending, including an immediate halt...
The Chancellor’s July 2024 speech set targets to cut consultancy spending, including an immediate halt to non-essential services and halving future spend to save £550 million in 2024–25. These goals were reiterated in the 2024 Autumn Budget. Cabinet Office and … Read more
HM Treasury
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12 Conclusion
71st Report - Government’s use of …
The Cabinet Office told us that central spending controls over consultancy spending were withdrawn in...
The Cabinet Office told us that central spending controls over consultancy spending were withdrawn in 2023 to improve the pace of decision-making in government.27 It has since encouraged departments to develop their own internal controls.28 When asked how government ensures … Read more
HM Treasury
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13 Conclusion
71st Report - Government’s use of …
The Cabinet Office told us that government is checking and validating the data it receives...
The Cabinet Office told us that government is checking and validating the data it receives from departments. This includes HM Treasury working with departments to ensure the data reflects actual consultancy spend.31 The Cabinet Office stated that the data indicates … Read more
HM Treasury
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14 Conclusion
71st Report - Government’s use of …
We asked what assurance the Cabinet Office and HM Treasury can give taxpayers that any...
We asked what assurance the Cabinet Office and HM Treasury can give taxpayers that any savings will reflect actual reductions in spend, rather than shifting spend to other categories, such as contingent labour. The Cabinet Office explained that it is … Read more
HM Treasury
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15 Conclusion
71st Report - Government’s use of …
In May 2021, the government established the Government Consulting Hub (GCH) to improve its use...
In May 2021, the government established the Government Consulting Hub (GCH) to improve its use of consultants and provide an in-house alternative. It employed around 70 to 100 staff and charged costs to departments using its services. The GCH published … Read more
HM Treasury
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16 Conclusion
71st Report - Government’s use of …
The Cabinet Office told us that The Consultancy Playbook sets out lessons learned on getting...
The Cabinet Office told us that The Consultancy Playbook sets out lessons learned on getting the best value from consultancy, including knowledge transfer and sharing best practice across departments. This may particularly apply to innovative digital and technology projects where … Read more
HM Treasury
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17 Conclusion
71st Report - Government’s use of …
However, the Playbook was last updated in 2022 and contains many references to the Government...
However, the Playbook was last updated in 2022 and contains many references to the Government Consulting Hub (GCH), including its Knowledge Exchange platform, despite this hub no longer existing. We asked why the Consultancy Playbook has not yet been reissued … Read more
HM Treasury
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18 Conclusion
71st Report - Government’s use of …
We also asked the Cabinet Office about the Government Consulting Hub and its usefulness before...
We also asked the Cabinet Office about the Government Consulting Hub and its usefulness before it was closed. The Cabinet Office said that the Hub was open just under two years and demonstrated that it was possible to provide expert … Read more
HM Treasury
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19 Conclusion
71st Report - Government’s use of …
The Cabinet Office stated that it incorporates and shares lessons from international best practice through...
The Cabinet Office stated that it incorporates and shares lessons from international best practice through both functions, for example by attending the Global Government Forum. We asked how government measures the effectiveness of disseminating this information. The Cabinet Office explained … Read more
HM Treasury
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20 Conclusion
71st Report - Government’s use of …
Workforce planning ensures that organisations have the right level of staff for their needs, with...
Workforce planning ensures that organisations have the right level of staff for their needs, with the necessary skills and capabilities. Getting workforce planning right helps organisations carry out their operations effectively so that they can achieve their objectives and priorities. … Read more
HM Treasury
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21 Conclusion
71st Report - Government’s use of …
Written evidence we received highlighted that government has faced long-standing challenges in developing and retaining...
Written evidence we received highlighted that government has faced long-standing challenges in developing and retaining core skills, and recommends not only building up civil service capability and capacity where skills are repeatedly needed but also providing training in the effective … Read more
HM Treasury
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22 Conclusion
71st Report - Government’s use of …
The Cabinet Office told us that, for the first time, government is developing multi-year strategic...
The Cabinet Office told us that, for the first time, government is developing multi-year strategic workforce plans for the civil service. The Cabinet Office has directed departments to provide five-year forecasts outlining the skills and capacity required to develop their … Read more
HM Treasury
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23 Conclusion
71st Report - Government’s use of …
We asked the Cabinet Office when it expects to publish the new strategic workforce plan.
We asked the Cabinet Office when it expects to publish the new strategic workforce plan. It told us that there is no confirmed publication date at present, but it hoped the government would be able to release the plan within … Read more
HM Treasury
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Government Response AI assessment · 5 of 4 classified

Total 4 recs + 19 conclusions
Correspondence 3 letters
5 Mar 2026 From committee Letter to the Permanent Secretary of the Cabinet Office regarding AI efficiencies, 5 March 2026
Parliament page
2 Feb 2026 To committee Letter from the Permanent Secretary at the Cabinet Office relating to the Committee’s evidence session on 15 December 2025 on the Government’s use of external consultants, 23 January 2026
Parliament page
12 Jan 2026 To committee Letter from the Permanent Secretary at the Cabinet Office relating to the Committee's evidence session on 15 December regarding the Government’s use of external consultants, 05 January 2026
Parliament page