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Counting the costs of consultants

Ever wondered how much the government spends on management consultants? Well, the Department for International Development (DfID) has paid a handsome sum to free-market ideologues the Adam Smith Institute, totalling over £34 million in the past six years (War on Want has produced an excellent report called Profiting from Poverty on this very issue. It is free to download).

Over at Sport England, the bill for consultants has more than doubled in the last Parliamentary term, and now comes in at £1,187,697 for 2004-2005.

The Identity Cards bill may have been scrapped for the moment, but that didn’t prevent the Home Office from chalking up a £5,716,259 bill with PA Consulting Services for “provision of management consultancy for the development of the ID card scheme” in the period up to December 2004.

The overall Home Office bill for consultants rose from around £7.5 million at the start of Labour’s term in 1997-1998 to £21,147,058 in 2001-2002, which appear to be the latest available figures.

The big picture here is a story of the outsourcing of government during New Labour’s two terms in office. That’s worth bearing in mind when politicians talk of cutting red tape (aka slashing civil service jobs).  OR

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