House of Commons Papers

This NAO report sets out two definitions of consultancy: (i) where individuals and companies are engaged to work on specific projects that are outside the client's business as usual; (ii) where responsibility for the final outcome of the project largely rests with the client. Central government spent £1.8 billion on consulting in 2005-06. This report sets out a number of recommendations on the use of consultancy, including: that public bodies need to be much better at identifying where core skill gaps exist; that consultants should only be employed after an assessment of in-house skills; all public bodies should adhere to OGC (Office of Government Commerce) guidance on consultancy contracts; public bodies should explore the market for the range of approaches and contracting methods available and make more use of different payment mechanisms; public bodies also need to be smarter when it comes to understanding how consulting firms operate and provide sufficient incentive to staff to make any consultancy project a success.