NAO slams government overuse of outsourced consultants

The National Audit Office (NAO) has criticised the government for failing to control spending on consultants and temporary staff, with spending up to between £1bn and £1.3bn in 2014-15, compared to £700m in 2011-12.

The report on rapidly increasing spending on consulting firms – including PwC, KPMG, EY, Deloitte, PA Consulting Services and McKinsey & Company – comes as Whitehall departments are reducing permanent staff.

The annual spend on consultants is equivalent to around 8% of the total annual salary and pensions bill for Civil Service permanent employees.