Statement from PAC Chair on NAO report on Reorganising central government bodies

20 January 2012

National Audit Office: Reorganising central government bodies

A statement from The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts:

The report has discovered that the current reorganisation of government is following an all too predictable path. The NAO has reported that previous reorganisations to central government did not deliver value for money. It is disappointing, therefore, that a number of key recommendations have not been properly followed up. 
The Cabinet Office does not know the one-off costs of the changes to quangos or what the on-going costs will be where functions are transferred. The Cabinet Office cannot point to the amount of spending that has been reduced as a direct consequence of these changes. It is not clear that greater accountability, one of the key aims of the reform, will be achieved.  

Value for money cannot be secured without a good grasp of costs and clearly defined benefits. These are not in place. The changes to quangos were made quickly and it is apparent from the report that the Cabinet Office must consider how it manages this programme to ensure value for money.

The report is available to read on the National Audit Office website

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