Philip Hammond

Localism

Treasury looks to quango cull

The Treasury has called on Whitehall departments to assess which quangos could be dismantled in a bid to save billions of pounds each year.

According to reports, Chief Secretary to the Treasury Liam Byrne has written to departments demanding an urgent review of all quangos to assess which can be abolished, merged with other bodies, or taken back into ministries.

The government spends £64bn on quangos each year and recommendations on how to reduce this figure are expected to be included in the pre-Budget report this autumn.

The announcement came ahead of a renewed call from Tory leader David Cameron for a “bonfire of the quangos”.

Mr Cameron has made a regular habit of calling for the abolition of quangos without specifying which will go.

He has previously spoken of his desire to do away with regional assemblies and, in his speech to the Local Government Association, added the Standards Board to the list.

Margaret Eaton, chairman of the Local Government Association, said: “It is time for a radical overhaul of the quango state that gives taxpayers more direct influence through the ballot box over how their money is spent by government at all levels.

“The LGA will be taking a close look at how quangos work, whether they provide people with value for money and whether they are genuinely open and transparent.”

Have your say

You must sign in to make a comment.

Newsletter Sign-up

teams

Retaining staff morale through a pay freeze

Click here

January

Top LGC news stories of January

Review them here