The Cabinet Office must learn from its 'poorly managed' quango review, and offer clear guidance to departments on implementing NDPB reforms, according to a select committee report

The government’s review of non-departmental public bodies (NDPBs), carried out last year, will not deliver significant cost savings or improved accountability, according to a report by the public administration select committee (PASC) published today. 

The review was 'poorly managed' and there was 'no meaningful consultation, the tests the review used were not clearly defined, and the Cabinet Office failed to establish a proper procedure for departments to follow', the report says.

The report expresses surprise that 'value for money' was not included as one of the tests applied to NDPBs during the review, and argues that more money could have been saved by moving functions performed by quangos out of the public sector altogether than simply by moving them into departments.

It also criticises the Public Bodies Reform Bill, designed to enable many of the reforms outlined in the NDPB review, which is currently being debated in the House of Lords. 

PASC chairman Bernard Jenkin (pictured above) said: “This was a fantastic opportunity to help build the Big Society and save money at the same time, but it has been botched. The government needs to rethink which functions public bodies need to perform and consider transferring some of these functions over to mutuals and charities.”  

On accountability, the report says that bringing functions back into departments, while improving ministerial accountability, 'is likely to undermine other channels of accountability, particularly with relevant stakeholder groups, and risk leaving policies fighting numerous other priorities for ministerial attention'. 

Changing organisations into executive agencies would allow ministers more direct accountability while 'still enabling high-quality day-to-day accountability by stakeholder groups',  it says, recommending that government 'consider converting those organisations which it intends to retain and move into government departments into executive agencies'. 

The report welcomes an amendment to the Public Bodies Reform Bill which will allow for more consultation about the reforms, and said these consultations should have 'a real effect on the outcome of the review; even if this means reversing decisions that have already been made'.

It also calls for future reviews to 're-examine the proper governance arrangements for each public body and place them in a new simplified taxonomy'.

Sir Ian Magee, a senior fellow at the Institute for Government who co-authored a report on quangos last year, said: "PASC rightly points out the chaotic and complex landscape of UK arms-length bodies (ALBs)."

"The current government plans to reform quangos stop short of dealing with this confusion – there are still too many categories of ALBs; 11 in total, that do not match form to function and do not help the public or government understand their roles and differences," he said.

PASC’s report also calls for more clarity on how departments should work with the organisations they sponsor, and for 'clear guidance' to help departments manage w'hat will inevitably be a complicated reorganisation process'.

It also raises concerns about departmental business plans, pointing out that the Cabinet Office business plan lists one of its actions – to 'support departments in developing a robust implementation plan' –  as completed, when it is in fact an ongoing process. Business plans, says the report, 'will only be useful tools to help the public hold the government to account if the information contained in them is accurate'. 'We request the Cabinet Office update its business plan to reflect the reality of the situation.' 

To read the full report click here.

Written by CSW