Quango cuts fail to deliver

24 April 2012 The government’s much-vaunted ‘bonfire of the quangos’ has not made the significant savings that ministers claimed, according to a powerful committee of MPs.
A report from the Commons public accounts committee warned the government’s suggestion that cuts to quangos would save £2.6bn was “based on incomplete and imprecise estimates”.

Committee chair Margaret Hodge said the MPs are concerned the claimed savings may in fact represent cuts to services.

“Not enough account has been taken of the continuing additional costs to other parts of government of taking on functions previously carried out by the abolished bodies,” she added.

The government has pledged to reduce the number of arms-length bodies from 904 to around 640 by 2015.

The cuts have already affected several bodies involved in the partnerships industry, with Partnerships for Schools subsumed into the education department, and the Homes and Communities Agency substantially reformed and reduced in scope.

This page was last updated on:
13 October 2014.

thumb

Lacking inspiration

Party conference season has yet to shine any light on what a new government might do in infrastructure come next May

thumb

The Credit Crunch Did Us a Favour

For some in the banking sector, the global financial crisis offered opportunities as well as challenges. Nord LB’s Sean Cook explains

register

Register now to get un-restricted access to all sections of the website.

Want to see more first? Try our free preview...