The Government's drive to abolish and reduce the role of quangos will have a significant impact on the local and regional economies where they are based according to a study by public property researchers Governetz.
Chancellor George Osborne has pledged to find additional £600m savings from quangos this year as part of government deficit-reduction measures.
‘Low impact' spending worth £270m will also be shaved from RDA budgets. David Werran, CEO of public property consultants Governetz said: ‘As first in the firing line, the loss to localities of high-skilled, well-paid quango staff will be real and immediate.' Ministers could gain sweeping new powers to reform 766 quangos costing £46bn a year and employing over 111,000 people.
The Public Bodies (Reform) Bill announced in the Queen's speech aims to reduce both the costs and numbers of Non Departmental Public Bodies (NDPBs) making year on year savings of £1bn. In early moves, two Coventry based education quangos, BECTA the schools technology agency and the Qualifications and Curriculum Development Agency (QCDA) were axed last week with the loss of 828 jobs.
Commenting on the closures Cllr John Mutton, leader of Coventry City Council, said: ‘Hundreds of local people work there and this is terrible news for them as well as for the city and our plans for recovery out of the recession.
' Quangos
Quangos abolished since May 11th
