Pat McFadden has asked departments to justify the existence of each of their arm’s-length bodies, in the government's latest effort to cut waste.
The Cabinet Office minister has written to departments asking them to “demonstrate the necessity” of their ALBs, with the presumption that they will be closed, merged or have functions brought back into departments where they cannot provide “compelling justification”.
The cabinet secretary, departmental secretaries of state and permanent secretaries will be held directly accountable for ALBs that continue to exist following the review.
Under the plans, bodies with large policy functions could brought back into departments, “bringing ministerial, elected scrutiny back to major decisions that affect the public”, the Cabinet Office said in a press release on the latest quango-cutting drive.
The Cabinet Office has also pledged to “retain the expertise and experience of staff working in these areas”.
The review, commissioned by the department at McFadden's request, comes after ministers announced last month that NHS England would be merged into the Department of Health and Social Care to reduce duplication.
McFadden said the all-quango review will aim to “drive out waste and inefficiency across Whitehall, reducing duplication and bureaucracy – saving the taxpayer money and cutting the cost of ‘doing government’”.
The review will operate under four key principles:
- ALBs for which independence from ministerial decision making is essential, such as those that scrutinise government or protect the rule of law, will be unaffected
- Ministers should have appropriate oversight and control over the development of policies of national importance
- The government should drive out duplication and inefficiency wherever possible
- The need to engage with stakeholders is not a reason for an ALB to exist as government should be working hard to engage with a variety of partners at every stage
Responding to the announcement, civil service unions urged the government to proceed carefully.
In a warning over job cuts, Lucille Thirlby, assistant general secretary of the FDA, the union for senior civil servants, said: “Ministers have the right to determine the size and shape of the civil service – including the use of ‘quangos’ and arm's-length bodies.
“Aiming to merge or close these organisations to stop the duplication of roles and reduce costs is one thing. However, if they target up to 50% job cuts – as they are pursuing with the NHS England and DHSC merger – the government seriously risks undermining their own agenda.”
Mike Clancy, general secretary of Prospect, the union for civil service specialists, warned that the government must ensure that any reorganisation does not “jeopardise the essential expertise and specialist skills contained within ALBs” and that it makes it "easier to recruit and retain the specialists the civil service needs”.
“Specialist civil servants working around the country in ALBs do incredibly important work that is often underappreciated in Westminster,” Clancy added. “If these functions are to be brought back into central departments then there need to be clear objectives and rationale for doing so.”
PCS general secretary Fran Heathcote said the civil service's biggest union shares the government’s “desire to create a more coherent civil service under direct, democratic state control” but added that ministers “must ensure that there is proper engagement with the unions”.
“Our members are the experts who know the civil service inside out,” she said.
Heathcote also warned of the need for guarantees on job security and pay and conditions, adding: “This is a big opportunity to change the civil service for the better and the government must handle it properly."
Ministers also target merch and away days
McFadden also announced a crackdown on government-branded merch and “costly away days” in its latest drive to cut the costs of running government.
The Cabinet Office has told departments to review their policies on procuring corporate-branded and “non-essential” merchandise, “with a view to restricting future purchases”.
Government-branded merchandise will be allowed only when it is essential for delivering the government’s agenda, “for example, in overseas trade and diplomacy, to promote growth”, the department said.
“Thousands of pounds have also been spent in recent years on goods branded with department logos or slogans – including mugs, jumpers, water bottles, and even fidget cubes,” the Cabinet Office said.
“Such spending will be banned, focusing funding where it matters to working people, such as rebuilding the NHS and strengthening our borders,” it added
The Cabinet Office also said it had asked departments to ensure that external venues for training and team-building exercises are only used when space in government buildings is unavailable.
The crackdown on spending in the civil service follows the announcements last month of large-scale administrative budget cuts, which could lead to 10,000 jobs being axed, and a freeze on government procurement cards.
McFadden said these changes “can target resources at frontline public services, with more teachers, extra hospital appointments and police back on the beat”.
The FDA said the announcement was "disappointing".
Thirlby said: “While it is understandable that the government want to ensure taxpayers’ money is not wasted, it is disappointing that they have chosen to focus on merch, mugs and hoodies. These savings represent a drop in the ocean compared to the resources that are required to deliver the government’s ‘Plan for change’.
“These announcements also contradict other efforts to reduce government spending. Officials can be instructed to hold training and team-building exercises and ‘away days’ in government buildings rather than in external venues, but the reduced government estate does not have the capacity to host these events.”