Recommendation 12

The Cabinet Office told us that central spending controls over consultancy spending were withdrawn in 2023 to improve the pace of decision-making in government.27 It has since encouraged departments to develop their own internal controls.28 When asked how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 these controls are applied consistently across government, the Cabinet Office explained that departments have demonstrated varying levels of control and that it is seeking advice from the Government Internal Audit Agency (GIAA) on how best to achieve consistency and to provide assurance that spending controls are appropriate. The Cabinet Office stated that it will also receive feedback from the GIAA on how to improve controls within ALBs.29 The Department for Energy Security and Net Zero told us about its spending controls, which require approval for consultancy contracts over £100,000 within three months, with further controls at £600,000 or for longer than nine months. For contracts over £10 million, a commercial assurance board reviews proposals against value-for-money tests. Contingent labour is managed separately through financial processes using CCS contracts.30