Source · Select Committees · Public Accounts Committee

Recommendation 3

3

Government continues to spend too much on consultants to undertake work that could be better...

Recommendation
Government continues to spend too much on consultants to undertake work that could be better done by civil servants, and does not do enough to utilise or develop skills and experience in-house. At the peak, more than 22,000 civil servants worked on EU exit, and at present that number is around 15,000. The civil service responded to this demand by moving staff between departments—two thirds of staff in DExEU came on secondment from other departments. A similar approach has been taken on a larger scale to respond to the Covid-19 pandemic. There has been high turnover among staff working on EU Exit, particularly at senior levels. Government has made extensive use of consultants to support preparations for EU Exit, and is also doing so on Covid-19, to fill supposed gaps in the capacity and skills of the civil service. The Treasury anticipates that consultancy and contingent labour will be an area of focus in the 2020 spending review to ensure departments are making the best use of spending in this area. The Cabinet Office intends to reduce government’s spending on consultants, by developing additional capacity and skills in-house to reduce the need for consultants. Recommendation: Government should set out how it will ensure it has a full and frank assessment of the impact of cross-government working/working on complex issues on civil servants. This should include both likely positive outcomes in terms of skills or experience gained from working in different departments, and also negative impacts such as workload, resilience and the likelihood of burnout. Government should accelerate its plans to reduce its reliance on consultants. It needs better challenge of spending on consultants; clear plans to transition skills in-house where there isn’t obvious business need for short-term staff; and then monitoring of progress both in terms of decreasing spending and increasing skills levels in the civil service.
Government Response Not Addressed
HM Government Not Addressed
3. 1 The government disagrees with this recommendation. 3.2 Please refer to the department’s response to recommendation 4. 3.3 The government agrees with this recommendation. Target implementation date: March 2021 3.4 The government has established a programme to review each aspect of how the government engages with consultants. Rupert McNeil, Government Chief People Officer, is SRO for the programme. 3.5 The programme covers: ● Government Consulting Hub - Establishing the Government Consulting Hub (GCH) to stand up the government centre for expertise in consulting. It will deliver strategy consulting projects to departments, inform best practice on when and how departments engage consultants, triage demand, draw together HM Government (HMG) consulting expertise into a profession, share ways of working, and be the single source of knowledge and advice on consultancy matters across government. ● Controls - Reforming central controls on consultancy expenditure. ● Data - Improving the quality of data and reporting on which firms the government uses, how much it spends and for what purpose. ● Standard - Developing a new ‘consultancy standard’ setting out requirements commissioners must meet when buying consultancy (for example, around knowledge transfer and performance management), supported by a Consultancy Playbook and a comply or explain approach ● Strategic Workforce Planning and Capability and Training - Sharing knowledge with Strategic Workforce Planning (in Civil Service HR) and Government Curriculum and Skills Unit (GCSU) to tackle capacity and capability drivers of consultancy spend. 3.6 The government is rapidly developing the Hub and aims to launch a pathfinder version of the Government Consulting Hub in early 2021 to iteratively design, test, learn and improve each element of the Hub.