14
Accepted
We asked what assurance the Cabinet Office and HM Treasury can give taxpayers that any...
Conclusion
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 monitoring all categories of external 26 Letter from the Cabinet Office, 5 January 2026 27 Q 36 28 C&AG’s Report, para 1.29 29 Qq 35-39 30 Qq 39-41 31 Qq 32, 40 32 Q 32 33 Letter from the Cabinet Office, 5 January 2026 10 resourcing (consultancy, contingent labour and professional services) to see that cost reduction is happening across the board.34 In written evidence provided after the session, the Cabinet Office indicated that analysis of departmental accounts shows spending is forecast to reduce across all three categories, with a reduction of over £1.17 billion in real terms by 2030. In addition, during the Spending Review 2025, HM Treasury set individual limits on consultancy spending for each department who have all agreed plans to stay within these limits. The Cabinet Office stated that further details will be published in the Civil Service Strategic Workforce Plan.35 34 Q 33 35 Letter from the Cabinet Office, 5 January 2026 11 2 Government guidance and planning for the use of external consultants Out of date guidance
Government Response Summary
The government acknowledges the committee's finding regarding assurance against spending shifts, confirming that departments publish spending on consultancy and contingent labour, and the Cabinet Office will provide collated professional services spending data to the Committee by July 2026.
Government Response
Accepted
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
Report
71st Report - Government’s use of external consultants
11 Mar 2026
HC 1521
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.4 yrs
Report published
11 Mar 2026