11 Accepted

The Chancellor’s July 2024 speech set targets to cut consultancy spending, including an immediate halt...

Conclusion
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 HM Treasury are jointly monitoring departments’ progress against the savings targets.25 17 C&AG’s Report, para 1.33 18 Q 27 19 Qq 27-28 20 Qq 30, 39 21 Q 29 22 Q 30 23 Qq 27-28 24 Q 31 25 C&AG’s Report, para 1.30 9 In written evidence provided after the session, the Cabinet Office explained that the baseline for achieving £550 million in savings in 2024–25 was calculated using departmental forecasts, submitted through OSCAR in June 2024. This amount totalled £1.5 billion, excluding expenditure related to the NHS, the Devolved Governments, and Local Authorities.26
Government Response Summary
The government acknowledges the committee's finding regarding spending targets and monitoring, stating that departments already publish consultancy and contingent labour spending, and the Cabinet Office will provide collated professional services spending data to the Committee by July 2026.
Government Response
Accepted
HM Government Accepted
3.1 The government agrees with the Committee’s recommendation Target implementation date: July 2026 3.2 Departments currently publish their spending on consultancy and contingent labour in their annual report and accounts. These have all been published for 2022-23, 2023-24, and 2024-25. 3.3 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.
Source
Committee Public Accounts Committee
Inquiry Government's use of external consultants
Report 71st Report - Government’s use of external consultants 11 Mar 2026 HC 1521
View on Parliament website
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.4 yrs
Report published 11 Mar 2026