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Public spending on quangos has increased by £10bn in two years, according to the Cabinet Office. The figures sparked a critical response from local government experts, who are concerned that, as central government comes under further financial and political pressure to devolve powers over key policies, responsibilities which could be handed to elected local authorities are instead being gifted to arm's length bodies. A Cabinet Office survey, published on 4 February, reveals that spending on quangos has increased by 25% from £37bn to £47bn since PM Gordon Brown came to power. The number of employees at quangos has also risen over the period, despite both the recession and an overall drop in the number of quangos across the UK. Whitehall sources said the Government was still on course to meet its efficiency targets which related to quangos, because of the fall in overall numbers. But concern is growing that rising spending on arm's length bodies is preventing the genuine devolution of welfare, schools, housing and health policies, for example, to elected local authorities. One senior local government source told The MJ: ‘These [Cabinet Office] figures show that ministers are getting the message that they cannot run the entire country from Whitehall – but also that they are still too reluctant to fully devolve to localities. ‘The use of unelected quangos to deliver crucial services keeps policies within reach of Whitehall, but hidden from public scrutiny. It is time for a rethink.' Francis Maude, shadow Cabinet Office minister, said: ‘This tier of bureaucracy lacks proper accountability.' A Cabinet Office spokesman said plans were afoot to reduce the number of quangos further, and devolve powers through programmes such as Total Place. The Local Government Association and London Councils have led campaigns to devolve oversight of key policies to local authorities. Tentative steps in that direction are being made with welfare and transport policy, while communities secretary, John Denham, last week beefed-up councils' scrutiny powers over unelected bodies which provide local services.

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WHITEHALL

Fury as quango costs leap £10bn

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