The Government's obsession with reorganising Whitehall departments has been roasted by the National Audit Office for wasting hundreds of millions of pounds.
There were over 90 reorganisations of central government departments and their arm's length bodies between May 2005 and June 2009 alone, over 20 a year. The NAO's study of 51 reorganisations found their gross cost to be £780m or £200m a year. About 85% of the total was for arm's length bodies with the main cost areas being in staff, IT and property.
The NAO report Reorganising central government also found ‘limited evidence of measurable benefits or of reorganisation being the most cost-effective way to deliver those benefits.' It also said that the ability of Whitehall bodies to identify reorganisation costs ‘is very poor' and added: ‘There is no standard approach for preparing and approving business cases assessing expected costs and intended benefits.'
In its highly critical report the NAO said the real costs are hidden, partly because no budgets are set in advance and partly because there is no requirement for bodies to reveal the costs of reorganisation so MPs remain unaware.
Since 1980 25 Whitehall departments have been created including 13 which no longer exist. In comparison in the US during the same period just two were created.
The NAO recommends there should be:
