Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 November 2024 to Question 14946 on Government Departments: Communication and Consultants, what the baseline aggregate annual cash figure of government spending on consultancy was on which the estimated reductions in spending of (a) £550 million in 2024-25 and (b) £680 million in 2025-26 are based.

The baseline aggregate annual cash figure for the 24-25 savings target is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.

The baseline for the £680 million 25-26 saving is based on a 50% cut to the average figure that HMG spent on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database.

The government’s policy is to reduce consultancy spending by £550m in 2024-25 and to halve spending in 2025-26 against a baseline of average HMG spend on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database. This financial reduction in spending will deliver cash savings of £680m.

The estimated baseline spending on consultancy in 2024-25 prior to the planned reduction of £550m is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.