Consulting & public services – the goose that lays the golden eggs‏

The November edition of the UNISON positively public briefing reports on the impressive research conducted by the East Midlands region of the union into the excessive spending (over £150M) by local authorities on consultants. It quotes the example of Wellingborough Council which spent 13% of its staff budget on consultants! http://www.unison.org.uk/file/B4792.pdf

This week an FT article ‘Public sector: Originality needed to merit fees’ examines the prospects for consulting firms in the UK and abroad in the current world economic downturn. Tight pressure on public finances is impacting adversely on the volumes of work available of, and competition for, public sector consultancy contracts.

The report reveals what a huge market now exists for consultants – ‘in 2008, global revenues for public sector consultants exceeded $55bn, or approximately 19 per cent of the total consulting market, and showed growth of 2.7 per cent over 2007’. Apparently in the UK budgetary pressures and the looming general election have led to reduced business in the public sector where one third of UK consulting takes place.
http://www.ft.com/cms/s/0/732f81a2-cfe3-11de-a36d-00144feabdc0.html

The 2006 book ‘Plundering the public sector’ by David Craig is a seminal work on how since 1997 the Labour Government has allowed consultants to hive off over £70 billion of public money in the name of ‘modernising’ public services. Government ministers, senior civil servants and special advisers made millions in a corrupt merry-go-round between Whitehall, private company boardrooms and the plush offices of consulting firms.
http://www.nhs-whocares.co.uk/discover-our-books/plundering-the-public-sector