Committee reports on Government cuts to public bodies
Summary
'Smaller Government: Shrinking the Quango State’ (HC 537) comments on the Government review of public bodies and how it was poorly managed.
The review focused on whether a body's functions were necessary, and if it thought they were, whether it had to be delivered at arm's length from Government.
The Public Administration Select Committee found that:
- there was no meaningful consultation;
- the tests used were not clearly defined; and
- there was no proper procedure for departments to follow.
The subsequent Bill - giving the power to bring about these changes – was equally badly drafted, the Committee commented.
Now the Government faces the much larger challenge of successfully implementing these reforms. The Cabinet Office should issue clear guidance on how to manage this transition.
Jointly with the National Audit Office (NAO), the Committee has developed its own guidance which departments could use.
The Government wanted to increase accountability by bringing previously dispersed responsibility back to central departments, thus making ministers directly responsible for the decisions taken.
However, stakeholders and civil society play an important role in providing challenge and criticism to public bodies on a day to day basis and it is easiest for them to perform this role when they have a clearly identified body to engage with.
Therefore, to meet both demands, it is recommended that these bodies are set up as executive agencies.
There is a need for a simplified system for public bodies so that it is clear to everyone who is responsible for what, and how much input it is right for the Government to have. The review represents a missed opportunity to reassess what functions public bodies are needed to perform.
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