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Government sets out further detail on local government savings

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kevin
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The Government has today published details of the £1.166bn Local Government contribution to the £6.2bn cross government savings in 2010/11. Communities Secretary Eric Pickles has confirmed that no local authority will face reductions in their revenue grant of more than 2 per cent.

The £6.2bn savings represent the first step in the Government's efforts to tackle an unprecedented £156 billion deficit inherited from the previous government in order to restore confidence in our economy and support the recovery.

Unless borrowing is reduced, interest on Government debt will hit £70 billion a year by 2014-15. This is more than is currently raised from council tax, business rates, stamp duty and inheritance tax combined.

Ministers have given careful consideration to how savings can be found without affecting the quality of key frontline services. The priority has been on driving out Whitehall waste with the brunt of the cuts being borne at the centre.

  • Communities and Local Government has been asked to find £780m savings in 2010/11. Departmental and Arms Length Body running costs are therefore being reduced by 10 per cent.

The need to act quickly to reduce the deficit means that Government departments have had to make difficult decisions about reducing grants to local government. Shielding the frontline has underpinned decisions on where savings can be found.

  • The £29bn general grant, the main source of funding that local government receives every year, is not being reduced. This will ensure that key frontline services can be protected and prevent council tax rises.
  • Local Government is being asked to contribute £1.166bn to overall savings. No individual local authority will face a reduction in their revenue grant of more than 2 per cent.

Government is reducing the management burden of authorities and giving councils the extra flexibility they need to concentrate on local priorities and protect the frontline.

  • Reduction in revenue and capital non-schools ring-fencing this year from 10.7 per cent (£4.5bn) to only 7.7 per cent (£3.2bn) as a first step to giving councils more freedom over spending decisions. In addition, a major scaling back of quangos puts local government centre stage in meeting the needs of local residents.

All councils will, by January 2011, be publishing online details of their spending over £500. This will mean local taxpayers will be able to see how councils are spending money-helping protect frontline services, encouraging greater efficiency and shining a spotlight on waste.

Communities Secretary Eric Pickles:

"The nation's deficit is running at £156bn. Reducing that deficit, putting the finances back on a stable footing and continuing to ensure economic recovery is the most urgent issue facing Britain. Tough fiscal times will be challenging for all, but the reductions have been made to reflect the Government's policy of decentralisation and a scaling back of the quango state.

"The detailed spending decisions outlined today show a clear determination to make the necessary savings whilst minimising the impact on essential frontline services like rubbish collections and protecting spending on schools and Sure Start. We have focused attention on reducing the centre and it is here that the reductions are the hardest.

"Steps have been taken to limit the impact on local authorities and make savings proportionally. Councils have been given the flexibility they need to determine where they make savings. We are clear that no extra burden must fall on local taxpayers. We are committed to freezing council tax in England for at least one year, and seek to freeze it for a further year, in partnership with local authorities."

The details being published today will enable local government to get on with the work of managing their budgets effectively.

The Government recognises that it will be challenging for local authorities to make in-year savings, as it is for other parts of the public sector. But Ministers are clear that delaying the cuts now will simply compound the impact on authorities for the future. For all grant streams the Government is satisfied that it has adopted a fair approach to making the necessary reductions.

Notes to editors

1. Local Government will make a contribution of £1.166bn towards the overall saving of £6.2bn across Government in 2010-11 through reductions in individual grants to Local Authorities. This is made up of:

Department for Education  £m
Revenue  
Reduction in the overall amount available to local authorities through Area Based Grant (ABG) from DfE. 311.0
Total DfE  311.0
Department for Transport  
Capital  
Integrated Transport Block 150.8
Major Projects 61.4
Yorkshire and Humber ITB transfer 23.5
Capital detrunking 6.8
PRN networking funding 5.9
Urban congestion fund 7.9
Road Safety capital grant 17.2

Total capital

273.4
Revenue  
Smaller grants, of which: 15.0
Kickstart 2009   5.0
Other funding support, as yet unallocated  10.0
Area Based Grant - Road Safety revenue grant  20.6
Total revenue 35.6
Total DfT 309.0
Communities and Local Government (CLG)  
CLG Departmental Expenditure Limit (DEL)  
Capital   
Housing Market Renewal    50.0
Gypsy & Traveller site grant  30.0

Total capital 

 80.0
Revenue  
Housing and Planning Delivery Grant  146.0
Connecting Communities  19.1
Other cohesion funding  5.0
Area Based Grant - Supporting People administration  30.0
Area Based Grant - Working Neighbourhood Fund  49.91
Area Based Grant - Local Enterprise Growth Initiative  17.5
Area Based Grant - Prevent  7.0
Area Based Grant - Cohesion  4.0

Total revenue

 278.5

Total CLG revenue and capital

 358.52
Local Government DEL  
Local Area Agreement Reward  125.0
Local Authority Business Growth Incentives scheme  50.0

Total

 175.0
Department for Environment, Food and Rural Affairs  
Capital  
Contaminated Land 7.5
Total 7.5
Home Office  
Revenue  
Reduction in the overall amount available to local authorities through Area Based Grants (ABG) from HO.  6.0
Total   6.0
Adjustment grant  -1.1
Grand total revenue  805.0
Grand total capital 360.9
Grand total local government grant reduction 1,165.9

1 Includes £4.9m of DWP funding for WNF
2 Includes £4.9m of DWP funding for WNF

2. The CLG grants above, total £353.5m (excluding those on Local Government DEL), and are part of the £780m in year savings to be made by CLG. The other CLG programmes which make up this £780m reduction are set out in the following table.

Reductions in CLG DEL

Programmes: 2010-11 Savings £000's % Saving Description
Cutting waste - CLG, Quangos and lower priority programmes 90,421    
Running costs for CLG and its Quangos 50,000 10 Efficiency savings from 2010-11 budgets
Running costs - Regional Development Agencies 17,000   Efficiency savings from 2010-11 budgets
Fire - New Dimensions Programme 5,000 10 Procurement Saving
Crosscutting Cohesion & Extremism 3,100 100 Unallocated funding
Thames Gateway 500 10 Unallocated funding
Cohesion & faith (non Local Government element) 3,235 32 Unallocated funding
Prevent (non ABG element) 6,586 53 Unallocated funding
Unallocated funding 5,000 100 Unallocated funding
       
Regional Development Agencies 186,000 20 Savings in line with plans to restructure regional tier
       
Housing Programmes 150,000 4  
National Affordable Housing Programme 100,000 3 Funding announced but not yet allocated
Kickstart 50,000 12 Funding announced but not yet allocated
TOTAL 426,421    

In addition, £10.9m will be cut from CLG's element of the Olympics funding contributing to the announced £27m saving across Government.

3. The following table showing the £0.405bn (26 per cent) savings to be made from Local Government DEL (the Departmental Expenditure Limit managed by CLG which holds all Government budgets for, or in relation to, local government which are not specific to a particular local government service), apart from the two specific grants to local authorities on this DEL (LAA Reward and LABGI) which are part of the £1.166bn reduction in local authority grants and included in the first table above:

Reductions in Local Government DEL

Programmes: 2010-11 Savings £000's % Saving Description
PFI Special Grant 160,000 15 Underspend
Valuation Office Agency    17,000 10 Efficiency Savings from 2010-11 budgets
Improvement, Transformation and Efficiency   40,500   33 Efficiency Savings from 2010-11 budgets
Local Area Agreements Reward Grant 125,000 100 Reduction in grant
Local Authority Business Growth Incentives 50,000  100  Reduction in grant
Inspection Grant to the Audit Commission 10,000 51 Efficiency Savings from abolishing CAA
Valuation Tribunal Service    700 6 Efficiency Savings from 2010-11 budgets
Standards Board for England   1,450  18 Efficiency Savings from 2010-11 budgets
TOTAL 404,650 26  

4. Details of grant reductions to individual local authorities:
http://www.communities.gov.uk/documents/localgovernment/xls/1611273.xls

5. Ring-fences removed from local government funding streams:
http://www.communities.gov.uk/documents/localgovernment/doc/1611282.doc

http://www.communities.gov.uk/news/corporate/1611138

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Local Authority Grant Reductions

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Local Authority Grant Reductions (Excel format, 84 Kb)

  • Departments: 

  • Communities and Local Government

Document type: 

Information

Date of publication: 

10 June 2010


Summary: 

This document gives details of grant reductions to individual local authorities.

  • Subjects: 

  • Benefits; 
  • Consumers, business and industry; 
  • Economic development; 
  • Economics and finance; 
  • Education and skills; 
  • Emergencies; 
  • Employment, jobs and careers; 
  • Environment; 
  • European and international affairs; 
  • Government and public administration; 
  • Health, well-being and care; 
  • Housing; 
  • Information and communication; 
  • Leisure and culture; 
  • Performance management; 
  • Planning, land and premises; 
  • Public order, justice and rights; 
  • Regional policy; 
  • Social issues; 
  • Transport and infrastructure; 
  • e-Government

  • Regions: 

  • National; 
  • East Midlands; 
  • East of England; 
  • London; 
  • North East; 
  • North West; 
  • South East; 
  • South West; 
  • West Midlands; 
  • Yorkshire and The Humber

http://www.info4local.gov.uk/documents/publications/1611480

kevin
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Secretary of State for Communities and Local Government

The Government has made clear that deficit reduction is its most urgent priority. On Monday, 24 May, the Chancellor of the Exchequer and Chief Secretary to the Treasury therefore announced that the Government would save over £6 billion from spending during this financial year. Included in that savings package were £1.166 billion reductions in grants to local government. I have today placed in the Library of the House information on the revenue and capital grants which will be reduced.

The Government is clear that deficit reduction, and continuing to ensure economic recovery, is the most pressing issue facing Britain. This will restore confidence in the economy and support the recovery. Advice from the Treasury and Bank of England is that it is better to start to make the reductions in the current financial year. Not to do so will simply delay the need for savings in future years, thereby compounding the impact on public services, including those delivered by local authorities, in the future. It is fair that local authorities make a contribution to the savings to enable Government to take immediate action to tackle the UK's unprecedented deficit in this financial year.

It is time for a fundamental shift of power from Westminster to individuals and their communities. We want to end the era of top-down government by providing a radical devolution of power and greater financial autonomy to local authorities.

So we will reduce the performance management burden on local government through abolishing the Comprehensive Area Assessment and reducing ring-fencing of central government grants, freeing up resources to concentrate on local priorities and the delivery of essential frontline services. We are committed to a full review of local government finance, to giving councils a general power of competence, and to working with local authorities to freeze council tax in England for at least one year as outlined in the Coalition Agreement and seek to freeze it for a further year, in partnership with local authorities. All of this will help to create the shift of power from the centre to local people that we are determined to deliver.

I am absolutely clear about the importance of the services which local government provides. So we have been determined to ensure local authorities can shield their key frontline services.

The Government has looked at whether it is possible to focus the reductions on grants which have not yet been committed through grant determinations or other statutory restrictions. This has been possible to some extent. Some of the reductions occur in grants where there are underspends, where the money has yet to be allocated or where a grant determination has not yet been made. However, because of the scale of the contribution from local government, it has not been possible to achieve the necessary levels of reduction without reducing some allocations included in grant determinations. Local Government along with the rest of society is being asked to play its part in helping to reduce the deficit. Where we have reduced revenue grants, no local authority will face a reduction of more than 2 per cent. This compares to the cut in running costs for my Department and its quangos of 10 per cent in 2010/11.

We have ensured that councils have the flexibility to take decisions locally on how to deliver the savings needed. I am pleased that we have been able to keep Formula Grant at the level approved by Parliament of £29 billion. We have also announced further removal from ringfencing of central government revenue and capital grants. This gives councils extra flexibility to make decisions about where savings are found, although this is subject to the usual rules which ensure that capital funding is used on capital expenditure. A list of grants which have been removed from ringfencing is included in the information made available in the House.

There are good reasons for the changes we have made. For example, we believe that the Housing and Planning Delivery Grant has proved to be an ineffective and excessively complex incentive. The coalition agreement set out that we will provide incentives for local authorities to deliver sustainable development, including for new homes and businesses.

The Government believes that there is significant scope for local authorities to find efficiencies in the way in which they deliver services. We believe there are further opportunities for an increased role for joint working between local authorities and between different types of public authorities across local areas. Our focus on providing councils with the flexibility to manage budgets effectively will ensure that councils can deliver those services which local people wish to see.

I recognise that making savings in-year will be challenging for local authorities, as it will be for other parts of the public sector. The information which my Department is today sending to every local authority provides the detail councils need to make the necessary decisions as quickly as possible on how they will deliver the necessary changes. I have also made available in the Library of the House, a copy of the information which we have sent to each local authority which sets out the revised allocations.

I know that councils want this information as a matter of urgency and we have worked hard to deliver this. The Government therefore wishes to provide as much clarity and flexibility to local authorities and other public bodies as quickly as possible so that they can best handle the changes proposed without an impact on key frontline services.

I am satisfied that we have adopted a fair approach to making the necessary reductions in the different grants and funding streams. We are therefore simply asking councils to check quickly to make sure that there are no errors in the calculation of the reductions.

The detailed spending decisions we are outlining today show a clear determination to help tackle the immense public deficit the new Government has inherited.

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Councils may get health commissioning role

Councils may get a bigger role in health commissioning, under government plans to radically scale back the role of primary care trusts.

The coalition's programme for government included plans to transfer many of PCTs' commissioning responsibilities to groups of GPs, which would make family doctors councils' key partners in integrating health and social care.

In an interview with doctors.net.uk, reported today by Health Service Journal, health secretary Andrew Lansley said that councils could help support GPs in commissioning health services, saying local authorities' role in commissioning social care "might make that quite a viable option". It would be up to GPs to decide whether to seek support from councils, or from PCTs or other organisations.

The plan to transfer commissioning powers from PCTs to GPs has been criticised by the chair of the Local Government Association's improvement board, David Parsons, who said that it would weaken democratic accountability in the NHS.

However, giving councils responsibility for commissioning support for GPs could address this concern.

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Ring-fencing removed from social care grants

Services for people with learning disabilities, stroke and HIV/Aids and social care IT schemes are at risk this year after the government announced today that ring-fencing would be removed from the grants funding them.

Communities secretary Eric Pickles today outlined how £1.16bn in local government cuts this year would be distributed and how ring fencing would be removed from £1.7bn in council funding. This is part of the government's plan to cut £6.2bn from public spending this year to bring down the deficit.

The plans include removing the ring-fence from three revenue grants:

• The learning disability campus closure programme grant (£51m), which helps people move out of NHS campuses into community-based accommodation.

• The £25.5m Aids support grant, which fund social care for people with HIV/Aids.

• The stroke strategy grant (£15m), which funds social care for stroke sufferers, under the stroke strategy.

The main social care revenue grant that will remain ring-fenced this year is the carers grant, worth £256m this year.

Five social care capital grants, worth £74m, will also no longer be ring-fenced, including the £30m grant to fund IT improvements and improved information services to help transform adult care in line with personalisation in 2010-11.

Though care services minister Paul Burstow confirmed this week that no adult social care grant would be cut at a national level, the removal of ring-fencing puts them at risk of local cuts.

National Aids Trust (Nat) chief executive Deborah Jack said she was "very disappointed" about the announcement to remove the ring-fence from the Aids support grant.

She added: "Nat published a report last year highlighting the importance of this funding which provides vital social care support for people living with HIV in England. Nat is seeking an urgent meeting with Eric Pickles to discuss what measures can be put in place to ensure that local authorities continue to invest in social care services to meet the needs of people living with HIV."

David Congdon, head of campaigns and policy at Mencap, said: “We like having the ring-fence for obvious reasons because expenditure is targeted and you stand more chance of the money being spent in the way it’s intended.” Monitoring should be carried out to ensure that the programme continues on track, he added.

Pickles said his aim was to reduce the performance management burden on local government by abolishing the comprehensive area assessment and reducing ring-fencing of central government grants.

This would free up resources to concentrate on local priorities and to protect frontline services.

Pickles added there was "significant scope" for local authorities to find efficiencies in the way they delivered services through joint working between councils and between different types of public authorities across local areas.

Pickles said: "The detailed spending decisions outlined today show a clear determination to make the necessary savings whilst minimising the impact on essential frontline services.

"Steps have been taken to limit the impact on local authorities and make savings proportionally. Councils have been given the flexibility they need to determine where they make savings. We are clear that no extra burden must fall on local taxpayers."

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Welfare shake-up for disabled to go ahead in 2011

A shake-up in government support for disabled and other benefit claimants seeking work will go live next summer, employment minister Chris Grayling said today.

In a ministerial statement, Grayling said the Work Programme, which will merge all existing employment support programmes for benefit claimants, would be launched by the summer of 2011.

A number of existing programmes for disabled people would be replaced, including

Pathways to Work, Workstep, New Deal for Disabled PeopleWork Preparation and the Job Introduction Scheme, will either be merged into the scheme at the time or phased in, to ensure continuity of provision.

However, the government is yet to confirm whether it will carry forward its predecessor's plans to launch Work Choice, a new employment support programme for disabled job seekers, this October.

This would merge Workstep, Work Preparation and the Job Introduction Scheme. The previous government announced preferred bidders in March, which includes Shaw Trust.

Grayling said: "We are committed to supporting severely disabled people and are currently reviewing the best way of doing this."

Grayling added that the government had written to affected providers and will discuss the implications for them on a one-to-one basis.

He said Work Programme would provide "significant opportunities" for private and voluntary sector providers "to deliver truly flexible and personalised support" and particularly highlighted the role of the voluntary sector.

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ILF statitics by Main Disabilty Conditions
ILF FOI response

Following the story this week about Learning Disability conditions, I submitted an FOI request to the ILF to see who they were supporting under it main disability condition. (see attached file)  

http://benefits.tcell.org.uk/forums/learning-disabled-care-worse

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Medical assessments for DLA claimants 'may not save cash'

Plans to introduce medical assessments for disability living allowance claimants, announced in today's Budget, may not reduce the benefits bill, as intended.

The proposal, unveiled today by chancellor George Osborne, will be introduced for new and existing claimants from 2013 and is designed to save £360m in 2013-14 and £1,075m in 2014-15.

However, the Office for Budgetary Responsibility, set up by the coalition to scrutinise public spending and taxation, identified disability benefits as one of three areas where the impact of policies announced today by Osborne were uncertain.

Currently, DLA claimants must complete a 59-page form and submit supporting medical evidence for their claim.

In his speech to the House of Commons, Osborne said the proposed assessment would be "a simple process rather than the complex forms [disabled people] have to fill out at the moment".

However, Mark Shrimpton, deputy chief executive of disability charity Radar, said: "They are making a gut reaction but they have no understanding of what the real impact will be."

Shrimpton added Radar could not support yet another assessment regime arguing there should be a single point of access to all benefits. He said: "Neither the taxpayer nor disabled people should support these multiple, expensive, exhausting and unnecessary burdens of bureaucracy."

Neil Coyle, director of policy at Disability Alliance, said it was "highly likely" that the assessment used would be the much-criticised work capability assessment, which is used to determine eligibility for employment and support allowance, the replacement for incapacity benefit.

Coyle said the WCA was "generating significant concern for its inability to recognise the impact an impairment or health condition has on a disabled person's life".

Osborne said three times as many people claimed DLA now as when it was introduced 18 years ago.

However, Rich Watts, director of operations at the Essex Coalition of Disabled People, responded on his blog, Arbitrary Constant, that this reflected the fact that more disabled people were living independently than in residential care. He said "effectively cutting DLA risks reversing this rise in independent living".

Osborne also announced that housing benefit will, from April 2011, be paid to disabled people requiring an extra room to support a carer.

He also promised that full proposals on welfare reform will be announced by October this year, when the government publishes its spending review, which will set out public expenditure limits for 2011-12 to 2014-15.

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Government invites views on tax policies

Today, the Exchequer Secretary to the Treasury, David Gauke MP has published nine documents for discussion and consultation relating to tax, following commitments made at the June Budget.

This will provide businesses, tax professionals and other interested parties with a more comprehensive view and the opportunity to comment on the Government's proposed tax reforms.
The Government set out its new and innovative approach to tax policy making at the June Budget, designed to create a more predictable, stable and simple tax system in the UK.

The documents published today are:
• PAYE reform
• Furnished Holiday Lettings
• Pensions tax relief
• Associated company rules
• Disclosure of Inheritance Tax avoidance
• Foreign branch taxation
• Controlled Foreign Company interim improvements
• Modernisation of Investment Trust Company rules
• National Minimum Wage regulations

The Government is committed to being more open and transparent in its approach to policy making. By allowing relevant and interested parties to have their say, it will greatly improve the quality of the process and allow the Government to make informed decisions based on the views of those who will be affected.

The Exchequer Secretary, David Gauke MP, said:
"We want to make the tax system simpler and work better for the taxpayer. By reducing burdens, making the right choices and involving taxpayers, we are sending a very clear signal that Britain is open for business"
"We are committed to a more considered and open approach to tax policymaking.  That is why consultation and scrutiny of our tax policies will be the cornerstone of our tax policymaking process. I want to encourage relevant parties to provide their feedback on the tax consultations that we have published today"

Notes for Editors

1. The documents can be found on the HM Treasury and HMRC website

2. The publication of these documents was announced at the Budget in June

http://www.hm-treasury.gov.uk/junebudget_documents.htm
3. Details on each document are set out below. By clicking on each heading you can navigate to the relevant consultation website:

4. PAYE reform (HMRC)
The Government today is publishing a consultation on improving the operation of Pay As You Earn (PAYE), which seeks views on the collection of real time information to simplify taxation and reduce burdens on business. It also invites views on an option for longer-term reform to improve accuracy and further reduce administrative burdens, or alternative proposals to the same end. The Government seeks interested parties’ views on these proposals.

5. Furnished holiday lettings (Joint HMT & HMRC)
The Government today is publishing a consultation document on a proposal to ensure that the tax rules for furnished holiday lettings meet EU legal requirements in a fiscally responsible way, by changing the eligibility thresholds and restricting the use of loss relief. The Government seeks interested parties’ views on the proposal set out in the document;

6. Pensions tax relief (HMT)
The Government announced in the June Budget that it is considering the issue of pensions tax relief. The Government today is publishing a discussion paper setting out the range of policy issues that would need to be decided in any new regime. The Government seeks interested parties’ views on these issues;

7. Associated company rules (HMT)
The Government today is publishing a summary of responses to the recent consultation on simplifying the associated company rules as they apply to the small profits rate of corporation tax. As announced in the June Budget, the Government will introduce the proposed legislation in Finance Bill 2011 and it will take effect from 1 April 2011;

8. Inheritance tax avoidance schemes (HMRC)
The Government today is publishing a consultation on legislation designed to bring inheritance tax, as it applies to the transfer of property into trust, into the disclosure regime, with the objective of addressing the problem of identifying such schemes and users at an early stage. The Government seeks interested parties’ views on the detail of implementation;

9. Taxation of foreign branches (HMT)
The Government today is publishing a discussion document on the scope of an exemption for foreign branch profits, aimed at delivering a more territorial approach to corporation tax to enhance the UK’s competitiveness. The Government seeks interested parties’ views on the likely impacts of the proposals set out in the document and on implementation of these proposals

10. Controlled Foreign Companies interim improvements (HMT)
The Government today is publishing a short note setting out the aim and scope of CFC interim improvements, together with the framework for consultation over the summer. The Government seeks interested parties’ views on the nature of these improvements, including possible options to achieve the aims set out here and potential other worthwhile improvements that should be considered;

11. Modernisation of Investment Trust Company rules (HMRC)
The Government is publishing a consultation document, which sets out proposals for modernising tax rules for Investment Trust Companies, together with consequential amendments to the Companies Act by the Department for Business Innovation and Skills. The Government seeks interested parties’ views on the proposals for change;

12. National Minimum Wage: travel and subsistence schemes (Joint HMT, HMRC & BiS)
The Government today is publishing a summary of responses to the recent consultation on travel and subsistence schemes implemented for some temporary workers paid at or near the National Minimum Wage (NMW). The Government has carefully considered the responses and has concluded that, on balance, action should be taken. It will amend the NMW Regulations to take effect from 1 January 2011;

http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=414684&...

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Treasury fails to remove disablist comments from cuts website

The government has been forced to suspend its new spending cuts website after it allowed members of the public to post offensive comments about disabled people – and then failed to remove them.

The Treasury’s Spending Challenge website received more than 15,000 suggestions about how to cut public spending in the first five days after it was opened to the public last week.
But many of the suggestions included offensive comments such as describing disabled people as “spongers” and “too lazy to work” and calling for disability benefits to be cut back “to the bare minimum”, as well as a stream of offensive remarks about other minorities.

Despite claiming the website was being moderated – checked for suitability – the Treasury failed to remove any of the 23 offensive posts about disabled people that were revealed by a brief search of the site by Disability News Service.
One person who posted a comment said that if disabled people can drive “they can afford to buy and run their own car and not sponge off the hard working taxpayers”.

Another proposed that all disability living allowance (DLA) claimants should be give a month’s work to do at home and “if the work has not been completed when collection due, DLA benefit can be reduced accordingly”.

A third proposed that the mobility component of DLA and attendance allowance should be scrapped, with half of the money given to councils and the other half used to pay off the budget deficit.

Yet another called for new criteria for DLA and incapacity benefit in order to “take some people from the ‘disabled’ bracket and put them into the ‘too lazy to work’ bracket”.
And one asked: “Why do we have to pay out large sums of money each month so that disabled individuals can drive around in big, brand new over-priced mobility cars which are ‘free’ to them on the Motability scheme?”

Another said disabled people who received benefits should be given “bare minimum, just enough to live on, without luxury”, with another suggesting the number of people entitled to disability benefits should be “cut to a bare minimum”.

Furious disabled activists said they believed the government had breached its duty to promote disability equality and eliminate harassment under the Disability Discrimination Act, by failing to police the site properly.

Both the Treasury and the Equality and Human Rights Commission (EHRC) were flooded with complaints about the site. The EHRC has now passed the complaints to its legal enforcement team “for consideration”.

An EHRC spokeswoman said: “We are taking a lot of complaints. The Treasury are bound by the public sector duty [to eliminate harassment and promote equality]. They have a responsibility that they have to live up to.”

Mark White, who runs the campaigning website The Political Cripple, said: “I have been fielding a number of calls from disabled people who are extremely upset that a government site is allowing hate crime.

“We have had to deal with negative stereotyping of disabled people for far too long. It is just unbelievable that the government is providing a venue for it to occur all over again.”

Fellow disabled activist Adam Lotun said disabled people were shocked that the government had allowed “bigoted, ill-informed and nauseating comments to pervade the site”.  
RADAR said it was appalled by the “offensive and prejudiced suggestions and comments” on the site, and the failure to remove them.

Liz Sayce, chief executive of RADAR, said: “Disabled people have plenty of ideas for efficiencies – for instance, reducing the unnecessary multiple assessments we face to one single assessment, saving the government billions of pounds in the process.

“Neither they, nor any other minority group, should be confronted by ill-informed, offensive and dangerous nonsense from prejudiced people.”

A Treasury spokeswoman said there were “strict guidelines in place to ensure any inappropriate comments are removed”, and added: “We know there have been some inappropriate comments and a dedicated team are working through to pull them down.”

But despite her claims, all of the comments above – which were all posted between 9 and 12 July – were still on the website on 15 July.

Access to the website was suspended later that day (15 July).
Another Treasury spokeswoman admitted that the site had been “temporarily suspended so we can moderate what’s on it”, but neither she nor her colleague were available to answer further questions.

News provided by John Pring at www.disabilitynewsservice.com

http://www.dls.org.uk/rights/News/july/12.html

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Local government’s contribution to the 2010/11 spending cuts

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The TPA Manifesto 3 months on

Tomorrow (Wednesday 11th August) it will be three months since the coalition Government was established and David Cameron became Prime Minister.  During the election, the TaxPayers' Alliance published a manifesto which set out our objectives for this Parliament.  We promised then that we would judge any new Government against that standard.

Today the TPA publishes its assessment of the Government's progress so far.  The new report judges the Government's performance on every objective in our manifesto and assigns a score out of five, from zero - no progress at all - to five - where the objective has been satisfied or a clear path has been set out for that to happen.

The full report can be found online here

Even on the 3 month objectives, our assessment finds that in every area good progress has been made against some objectives but lacking in others.  For example:

  • In tax and spending, the Government has cut advertising spending in half (5/5) and abolished a number of quangos (3/5) but has not scrapped the 50p tax rate (0/5) or instituted clear fiscal rules with expenditure targets (1/5).
  • In reforming services, the Government has cancelled Prevent grants through local authorities (5/5) but has kept the 0.7% target for foreign aid spending (1/5).
  • In democracy and transparency, the Government have set out plans to publish full data on spending (5/5) but have not taken action on taxpayer funding for the unions (0/5) or started EU reforms (1/5).

In the rest of this Parliament, the TaxPayers’ Alliance will continue to campaign on the objectives set out in our manifesto.  In those areas where good progress has been made so far we will work to ensure that the initial promise is delivered upon, in other areas we will campaign for change.

To read the press release, please click here

For the full report, please click here

Matthew Elliott, Chief Executive of the TaxPayers' Alliance, said:

"It is hypocritical for firebrand trade union leaders to be calling for strikes and higher taxes while they themselves live a life of well-paid luxury. It is small wonder that they aren't worried about the tax burden or the national debt when they are so well-off, but it is ordinary, over-stretched taxpayers who will suffer if they get their way. Their bluster should be ignored, and the Government should stop pouring taxpayers' money into union coffers, as they clearly have more than enough cash already."

http://www.taxpayersalliance.com/home/

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How can we re-think government to deliver more for less?

The Spending Challenge is your chance to help shape the way government works. We need to reduce the deficit by cutting public spending in a way that is fair and responsible - and you can help.

We’ve had an overwhelming response to the Spending Challenge. Over the past month, you’ve submitted more than 44,000 ideas via this website. Now we’re asking you to help rate the ideas we’ve received.

Rating ideas...

Look through the ideas we’ve had, and rate the ones you think have the potential to save money while impacting least on public services. We’ve put the ideas into categories and marked a few we think are interesting – but it’s up to you to tell us what you think. As you read through the ideas on the website, we’re asking you to let us know what you think by rating the idea from 1 star (poor) to 5 stars (excellent).

Remember: we’re looking for ideas that can be implemented quickly to help to make savings, deliver services more efficiently and get more from less.

What next...

At the end of August, we'll review the ideas with the most potential and investigate them in further detail to see if and how they could be taken forward for the Spending Review on 20th October and beyond.

Please note: these are the ideas of individuals who’ve submitted responses to the Spending Challenge, not the views of the UK Government. If you see anything on here that you think is offensive or inappropriate, please flag this content immediately and we will remove it asap if it does not comply with our moderation policy. We’ve also tried to ensure no personal information is published here – if you find any ideas which contain personal information such as names, mobile phone numbers, addresses please notify us. Please note, due to the large number of ideas we have received we are not able to answer queries on specific ideas and posts.

Get going ...

To start looking through the ideas just click on the tags to the right; search for a specific items above; or alternatively, click here for a list of all ideas.

http://spendingchallenge.hm-treasury.gov.uk/

http://www.hm-treasury.gov.uk/spend_index.htm

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Councils 'could cut 500,000 jobs and not harm services'

The UK's councils could do the same amount of work with 500,000 fewer staff if they matched the productivity of private firms, a report has claimed.

Junior staff in local authorities were, on average, productive only 32% of the time during working hours, said management consultancy Knox D'Arcy.

It said this compared with an average of 44% in the private sector.

Knox D'Arcy, which carried out 1,855 workers' surveys, said firms had better systems to ensure targets were met.

"Put simply, by matching average private sector staff utilisation levels, local government could increase its productivity by roughly a third," said Paul Weekes, the report's author and principal consultant at Knox D'Arcy.

"This sort of dramatic increase would help significantly offset the cuts that are on the agenda as part of the Government's austerity package."

John Ransford, chief executive of the Local Government Group - which is made up of six organisations representing councils in England and Wales - said local authorities had been "achieving efficiency savings year-on-year".

"With shrinking resources and increasing demand for services, councils are already looking at how they can protect vital frontline services by delivering more for less, and how they can provide greater value for money for taxpayers," he said.

He added that they had already set out to the government a programme of reform that could "deliver billions of pounds worth of savings by axing costly middlemen and stripping away unnecessary bureaucracy".

http://www.bbc.co.uk/news/uk-11034769

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Fiscal Facts

Fiscal Facts contains facts and figures about UK taxes, benefits, the public finances and trends in inequality and poverty.

  • The tax and benefit tables give current and historical rates and thresholds for the main direct and indirect taxes, as well as benefit rates, numbers of claimants and expenditure levels. Two briefing notes describe the UK tax and benefit systems respectively.
  • We give public finance information for the UK and some comparative figures for OECD countries. Briefing notes in this section survey public spending in the UK and local government spending. A new note in September 2009 looks at possible areas for spending cuts.
  • Figures relating to various measures of inequality and poverty in the UK over time. These are accompanied by briefing notes about aspects of poverty, inequality and well-being.

This table shows tax measures introduced in each Budget and PBR (since 1979).

This work is funded by the ESRC Centre for the Microeconomic Analysis of Public Policy at IFS. Any comments on these pages should be directed to the contacts named on the right.

http://www.ifs.org.uk/fiscalFacts

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Government implements saving ideas submitted through the Spendin

Government implements saving ideas submitted through the Spending Challenge

The Government announced today that three ideas submitted to the Spending Challenge by members of the public and public sector workers will be implemented as policy by the Government.

These are the first to be introduced and will help the Government reduce the deficit.

The three ideas are examples of how the common-sense suggestions, submitted to the Government through the Spending Challenge website, can make savings for the taxpayer and help the Government reduce the deficit and rebalance the country’s economy.

The three ideas being introduced are:

1. To reduce the number of CRB checks for Junior Doctors, by taking a more common- sense approach across the NHS, so that junior doctors are not checked repeatedly over a short space of time. This will save up to a £1 million a year and cut administrative burdens for the NHS;

2. To distribute National Insurance numbers to people with a letter rather than a plastic card, saving Government up to a £1 million per year;

3. Increase the selling of surplus and second hand Government equipment by expanding the use of the MoDs eDisposals service for use across all Government departments and the piloting of an online auction site.

All of these ideas were submitted through the Government’s Spending Challenge website. The Government has received over 100,000 ideas through the Spending Challenge. Over 63,000 have come from public sector employees and the rest from the general public website.

Speaking after meeting some of the people who submitted these ideas, the Chancellor George Osborne MP, said:
“These are the people’s ideas. Over 100,000 suggestions have been put to us and now we’re starting to put some of them into practice. In doing so, we are directly tapping the experience of those working in the frontline of public services instead of assuming Ministers in Whitehall have all the answers.

“No one idea will solve the problems we face, but taken together they can make a real contribution to reducing the deficit and rebalancing the country’s economy at a crucial time. People’s ideas will have a real impact on the tough decisions ahead.”

Other ideas submitted through the Spending Challenge are being considered by the relevant Government department. If they offer an opportunity to make practical savings for the Government, they may be introduced as part of the Spending Review this autumn.

Notes for Editors

Changes to the National Insurance Number Card:

1. In 2011, the Government will introduce a new system for distributing National Insurance numbers to people which will see the plastic National Insurance number card replaced with a letter.

2. In the interim, a letter will be sent instead of replacement cards, saving £100,000 in 2010/11.

3. HMRC issues young people a National Insurance number card (NINO card) at the age of 15 years and 9 months, to migrant workers within the UK and also issues replacement cards to people who request one.

4. Initial estimates show that the replacement of a plastic NINO card with a letter will provide savings of up to £1 million per annum in the upfront costs to HMRC.

5. The NINO card is not a recognised form of ID within the UK, but is simply a reminder to the holder of the card of their National Insurance number. The replacement of the NINO with a letter would only replace the physical form in which this reminder was produced.

Changes to CRB checks for Junior Doctors:

6. The Government will establish a more common-sense approach to CRB checks for Junior Doctors, reducing the costs incurred by the NHS when a Junior Doctor moves position as part of their training. Currently, NHS employers regularly make CRB checks every time a Doctor moves position and, as Junior Doctors move every 6 months as part of their training, this increases costs and administrative burden for the NHS.

7. The Department of Health will now make sure that NHS employers are aware that they can take a more common sense approach to CRB checks and allow existing CRB checks to be used, simplifying checks for Junior Doctors and reducing costs. NHS employers will continue to require the normal references and other pre-employment checks that they should be undertaking in any case. 

8. The change to CRB checks for junior doctors will save up to £1million a year for the NHS.
Selling on surplus Government equipment through an online auction site:

9. The Government will now pilot the use of an online auction site to sell on surplus and second hand Government equipment.

10. The Cabinet Office and the MOD will launch a pilot project this autumn that will develop the existing MOD eDisposals service, including the eDisposals website, for use across all Government departments. The website will allow all Government departments to sell on old or unused equipment so that the money made can be reinvested in public services.

http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=415410&...

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30,000 jobs at risk as London's town halls face £2bn budget cuts

Town halls in London are expecting budget cuts of up to £2 billion over the next three years, putting jobs and frontline services at risk.

An Evening Standard analysis found they could lose as much as £100 million each as Whitehall cuts begin to bite. But local government experts warned that the final figure could be much higher and up to 30,000 jobs could go as a result.

London's 32 borough councils are expected to charge more for services such as meals on wheels and swimming pools in order to plug the funding black hole. Inner London boroughs such as Islington, Camden, Tower Hamlets and Southwark, which have the largest settlements from central government, will be the hardest hit.

Town hall chiefs have warned that services such as education, leisure, roads and housing could all be at risk from the average 24 per cent reduction in grants. Tens of thousands of council staff are already facing a two-year pay freeze and an end to gold-plated pension schemes. Many councils have started cutting back with 400 posts in Lambeth going by April, 300 in Havering over the next five years, while up to 500 will go in Sutton.

About 275 jobs are at risk in Camden while Hammersmith and Fulham has already cut 600 posts.

London government expert Tony Travers said: "Many are already preparing for cuts of around 25 per cent to their budgets and that will mean some very hard choices. It is possible that the reduction in spending could be even bigger than £2 billion.

"They could face not just one or two years of spending going down but four or five. It would be surprising if there is not a further reduction in jobs of up to 30,000 over the next few years."

A full analysis http://www.thisislondon.co.uk/standard/article-23878633-30000-jobs-at-ri...

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Budget cuts and children in poverty

Budget cuts and children in poverty - don't overlook the smaller things

Many of the rows over the Spending Review in October and subsequent spending cuts will be about hard-edged issues: benefits, health, policing, social services, housing. Some will involve services which may be seen as less important, but have strong defenders – libraries, swimming pools, speed cameras.

But two issues that may not come up very much are vital to the interests of families living in poverty.

The first is the type of jobs available to them. The Government is accelerating the process of transferring more people to Job Seeker’s Allowance from other benefits. It is also increasing conditionality and pressure to find work, including for lone parents with children in primary school. Paid employment is the best way out of poverty for many families. However, at the moment a vast number of people move into work but are not lifted out of poverty. Even more worryingly, these first jobs can fail to act as stepping stones to ones that are better paid, more satisfying and which do lift families out of poverty. Instead individuals get stuck in jobs that are poorly paid, which offer little chance for training or progression, are hard to combine with caring and can often be insecure as well. Over the last decade in-work poverty has barely shifted.

Reducing the deficit and making services more local and flexible have been the driving forces of the Coalition’s approach to the Spending Review. The argument is that these two goals are also central to promoting fairness, being progressive and tackling poverty. However, to really achieve those aims the Government needs to make transforming the labour market their third major goal.

The second issue is out-of-school activities for children and young people. Our research shows that taking part in out-of-school activities can make a big difference to children’s education, as well as to the family’s quality of life. Children from low-income families already struggle to access such activities in many areas. Not only fees but transport and other incidental costs can be major barriers, as can attitudes and confidence. The future of youth work and ‘extended schools’ programmes are very unclear at the moment. Providing activities and childcare for school-age children and young people, and making sure they are accessible to low-income families, may be easy issues to overlook amid the bigger fights, but they are crucial to improving both employment and life chances.

There is likely to be growing tension between the desire to involve charities and community groups in running services and building the ‘Big Society’, and shrinking funding for such organisations. Improving the quality of work and access to out-of-school activities may not actually require enormous levels of spending, but they do need attention, ideas and a lot of political will.

http://www.jrf.org.uk/blog/2010/09/budget-cuts-and-children-poverty-dont...

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TPA Research: Council Spending: Unnecessary Jobs

Climate Change Officers, Political Advisors, Diversity Officers and European Officers cost taxpayers £41 million a year

Includes a full local council breakdown

The TaxPayers' Alliance today reveals new research on the cost of unnecessary staff at local councils. These non-frontline workers are doing jobs that could be cut, without putting frontline services at risk. Our report reveals for the first time a full list of how many Climate Change Officers, Political Advisors, Diversity Officers and European Officers are working at each council.

Click here to download the report

This is just a sample of four roles that we requested information about; the true cost of unnecessary jobs is much higher and represents a large sum of taxpayers' money that can be painlessly saved.

Key findings

  • Political Advisors, European Officers, Diversity Officers and Climate Change Officers cost £41 million in 2009-10.
  • 141 full time equivalent council employees worked as Political Advisors at a cost of nearly £5 million in 2009-10.
  • Nearly 183 full time equivalent council employees worked as European Officers at a cost of £6 million in 2009-10.
  • 543 full time equivalent council employees worked as Diversity Officers at a cost of nearly £20 million in 2009-10.
  • 350 full time equivalent council employees worked as Climate Change Officers at a cost of over £10 million in 2009-10.
  • The UK council with the most staff in these positions is Birmingham, at a cost of over £2 million, which included the employment of 28 Diversity Officers who accounted for nearly all of the cost.
  • The council in Scotland with the most staff in these positions is Glasgow, at a cost of nearly £350,000.
  • The council in Wales with the most staff in these positions is Caerphilly, at a cost of nearly £450,000.
  • The council in Northern Ireland with the most staff in these positions is Belfast, where the cost was over £250,000 in 2009-10.

Chris Daniel, Policy Analyst at the TaxPayers' Alliance, said:

"Councils need to cut spending and start delivering value for money to hard-working taxpayers, but not all spending cuts affect frontline services. Many household budgets are under huge pressure and council tax has doubled in the last decade, but this money isn't necessarily going on the services households rely on most. Cutting down on staff doing unnecessary jobs is one way councils can save money without affecting those frontline services. These jobs are all the result of councils going too far in following the edicts of central government, instead of focussing on local priorities; or chasing grants that are, in the end, more than paid for by British taxpayers. Over time, we should move towards a situation where interference from Whitehall doesn't encourage this sort of waste. But right now councils can deliver better value for money by cutting these jobs."

Click here for the report

Notes to Editors

1) The TaxPayers' Alliance (TPA) is Britain's independent campaign for lower taxes and better services. It has 60,000 supporters across the UK, and was founded in 2004.
2) The full report can be found online here: http://www.taxpayersalliance.com/unnecessaryjobs.pdf
3) The full report includes a breakdown by local council.
4) Methodology: The report was compiled using responses from Freedom of Information requests submitted to every local council in the UK.

http://www.taxpayersalliance.com/bettergovernment/2010/10/new-tpa-resear...

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Government cuts ''are actually modest''

The level of cuts being imposed by the government to tackle the national deficit shouldn't be described as swingeing, savage or draconian – indeed they are modest, according to City economist Dr Tim Morgan.

Government spending in 2015/16 will be £686bn in real terms, Morgan said, meaning that spending will be higher then than it was in 2009. And while spending in unprotected departments will fall in real terms in the next five years this will be by just 7 per cent.

Published by the Centre for Policy Studies (CPS), Morgan's report – called 'A shower, not a hurricane: the modest nature of the proposed cuts' – said that cutbacks will only reverse over five years a comparatively small part of the "enormous real-terms increase" that took place over the preceding decade. In 1999/2000, government spending was £343bn, a figure which would, had it only moved in line with inflation, have reached about £450bn by 2009/10. But actual spending in that year had risen to £669bn, a 53 per cent increase in real terms, Morgan pointed out.

The spending plans outlined in the 2010 June budget reduce real-terms outlays from a projected £697bn this year to £686bn in 2015/16 (in 2010/11 prices). Interest payments and the political decision to maintain health and foreign aid budgets means that spending by unprotected departments will fall in real terms from £523bn this year to £485bn by 2015/16, what Morgan called "a less than terrifying correction".

He added, however, that the alternatives to these cuts were far worse: higher government borrowing would almost certainly entail much higher interest rates, further quantitative easing would risk a surge in inflation and huge tax rises would seriously undermine economic competitiveness.

CPS director Jill Kirby said: "As public and media anxiety builds in anticipation of the Comprehensive Spending Review, it's important to keep a sense of proportion. Returning to fiscal reality after the Labour government's huge spending spree is clearly necessary, but the overall fall in real terms spending will be modest. By concentrating on reductions in administration – a category of expenditure which ballooned under Labour – the fall-out from the CSR need not be dramatic."

http://www.publicservice.co.uk/news_story.asp?id=14452

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June 2010 Budget: Government Response to the First Report from t

Treasury - First Special Report
June 2010 Budget: Government Response to the First Report from the Committee

Terms of Reference

First Special Report

Appendix: Government response

http://www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/586/...

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Government fails to foster in-house skills

Government departments will always need to call in consultants who offer specialist skills that may not be available in-house but it is very worrying that some departments have failed to grow the skills they need, leaving them heavily reliant on outside help, the Public Accounts Committee has said. It added that relying on consultants for commonly needed skills was expensive and repeated use of them suggested poor value for money.

The committee said that the Cabinet Office had not done enough to increase government's core skills despite recommendations to do so in 2002 and 2007. The MPs accepted that it takes time to grow such skills but there should have been more progress after 16 years. Particularly worrying was that IT and programme and project management consultancy had increased from 50 per cent to 60 per cent of all consultancy spend since 2006/07. Where skills do exist within government, the committee said, departments lack the knowledge and flexibility to deploy people to where they are needed. Also, pressure to cut training budgets may affect departments' ability to develop the internal skills they need, reflecting a short-term financial cut leading to longer term unnecessary spending.

Reacting to the statistic that spending on consultants and interims by central government departments was more than £1bn in 2009-10, the committee said it was not clear why some departments used consultants more than others: for every £100 spent on staff costs, the Department for Transport spent £70 on consultants, a very high proportion when compared to HM Revenue and Customs which spent only £2. Central government had no idea about how arms length bodies used consultants, nor did it have any up to date data on their spending. The National Audit Office estimated that arms length bodies spent at least £700m on consultancy in 2009/10.

Committee chair Margaret Hodge said: "Despite spending over £1bn a year on consultants and interim staff, central government departments are largely in the dark about whether this represents value for money. There are of course legitimate reasons for a department to buy in specialist skills where they are in short supply internally. But departments have become too reliant on buying in core skills rather than developing them in their own staff.

"Some departments depend far more on consultants than others. In itself, that is not surprising. What is unacceptable is the poor understanding of whether the extent of a department's use of consultants is justified by the nature of its business. Why should the Department for Transport, for instance, be so dependent on consultants?"

http://www.publicservice.co.uk/news_story.asp?id=15061

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