What's Happening?
The Ministry of Housing, Communities and Local Government (MHCLG) has reported an increase in spending on specialist temporary workers, rising by nearly £1 million in the fiscal year 2025 compared to the previous year. This increase is attributed to the targeted use of specialist contractors to support priority programs, particularly in digital, technical, and transformation services. Despite this rise, the department remains committed to reducing its reliance on external suppliers and consultants, having already achieved a 50% reduction in consultancy use since 2023/24. Samantha Dixon, the department's minister for building safety, fire, and democracy, emphasized the ongoing invest-to-save initiative, which aims to replace contractors and professional services with permanent civil servants, thereby reducing costs and enhancing the skills and sustainability of the civil service workforce.
Why It's Important?
The shift towards reducing reliance on external consultants is significant for the MHCLG as it aims to build in-house capabilities, which can lead to substantial cost savings and increased efficiency in delivering government objectives. By investing in permanent civil servants, the department not only cuts costs but also strengthens its workforce's skills and sustainability. This move is expected to generate further annual efficiencies and support more effective delivery of the department's objectives. The most significant project currently being delivered is the £150 million Digital Planning Programme, which aims to modernize the planning system by transitioning from a semi-analogue system to a data-driven, standards-based approach powered by modern, user-centered products and services.
What's Next?
The MHCLG will continue its efforts to reduce dependency on external consultants and suppliers, focusing on building in-house capabilities. The ongoing Digital Planning Programme, set to conclude in 2027, will be a key area of focus, aiming to deliver a modern and efficient planning system. The department's commitment to reducing consultancy use and enhancing civil service skills is expected to lead to further efficiencies and improved delivery of government objectives.
