Ministers Plot Major Cull Of Quangos In Power And Spending Shake-Up

Hundreds of taxpayer-funded organisations are under review as the UK Government moves to cut public spending and bring more decision-making power under ministerial control.

Cabinet Office Minister Pat McFadden has written to government departments, instructing them to justify the existence of every publicly funded body not directly overseen by ministers.

The move is part of a broad review into quasi-autonomous non-governmental organisations – commonly known as quangos – that could lead to closures, mergers, or the transfer of responsibilities to Whitehall departments.

A government source told the BBC that ministers are even considering new legislation to make it easier to scrap multiple quangos simultaneously. While no deadline or target has been set for how many organisations could be abolished, the review is expected to focus on those involved in policy areas deemed to be of national importance.

The review follows Prime Minister Sir Keir Starmer’s announcement that NHS England – described by Labour as the world’s largest quango – will be absorbed into the Department of Health and Social Care in a radical restructuring of the health service’s management.

The Cabinet Office said the review would be guided by four key principles, including the need for ministerial oversight of major policy issues and improving government efficiency. It added there would be a presumption that any quango could be scrapped unless there is a compelling reason to retain it.

However, organisations tasked with scrutinising government or upholding the rule of law are expected to be exempt from reform.

McFadden said: “The government wants to ensure decisions of national importance that affect everyone in this country are made by those who have been elected to do so. The 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’.”

Quangos include a wide range of bodies, from large-scale entities like NHS England, to smaller organisations such as the Gambling Commission and the British Film Institute. Some, such as the Environment Agency and Ofcom, are empowered to make independent decisions without ministerial input.

The Labour government has already established new quangos, including Great British Energy – set up to invest in clean energy sources. But the new review echoes the approach of the 2010 Conservative-Liberal Democrat coalition, which scrapped hundreds of such bodies in what was dubbed the “bonfire of the quangos”.

Trade unions have raised concerns about the potential impact of further cuts on civil service jobs.

Lucille Thirlby, Assistant General Secretary of the FDA union, which represents senior civil servants, warned: “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.”

Fran Heathcote, General Secretary of the Public and Commercial Services (PCS) union, said: “Ministers must ensure that there is proper engagement with the unions. If these changes are to be a success, our members will obviously need guarantees on their job security and pay and conditions.

“This is a big opportunity to change the civil service for the better and the government must handle it properly.”

Source: BBC News