MHCLG Aims to Reduce Consultant Use After Digital Spending Increase

What's Happening?

The Ministry of Housing, Communities and Local Government (MHCLG) increased its spending on specialist temporary workers by nearly £1 million in FY25, primarily to support digital, technical, and transformation services. Despite this rise, the department is committed to reducing reliance on external suppliers and consultants, having already achieved a 50% reduction in consultancy use since 2023/24. The MHCLG is actively replacing contractors with permanent civil servants as part of an invest-to-save initiative, aiming to enhance the skills and sustainability of the civil service workforce.

Why It's Important?

The MHCLG's efforts to reduce consultant use reflect a broader trend towards building in-house capabilities within government departments. By decreasing dependency on external suppliers, the department aims to achieve substantial savings and improve the efficiency of its operations. The focus on enhancing the skills of the civil service workforce is crucial for supporting effective delivery of objectives and ensuring long-term sustainability. The shift towards permanent civil servants also aligns with the government's goal of creating a modern and efficient planning system through the Digital Planning Programme.

What's Next?

The MHCLG will continue to focus on reducing consultant use and building in-house capabilities to support its digital transformation initiatives. The ongoing invest-to-save initiative is expected to generate further annual efficiencies, contributing to the department's objectives. The completion of the Digital Planning Programme in 2027 will be a key milestone, delivering a modern planning system that is data-driven and user-centered.

Beyond the Headlines

The reduction in consultant use by the MHCLG highlights the importance of building in-house capabilities for long-term sustainability. By investing in the skills of the civil service workforce, the department aims to enhance its ability to deliver effective and efficient services. This approach reflects a broader trend towards reducing reliance on external suppliers and improving the efficiency of government operations.