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20/05/2004
NHS quango staff face axe in cost-cutting exercise
The number of quangos in the NHS are set to be reduced in a red tape cutting exercise designed to save around half a billion pounds, the Health Secretary has announced today.
Referring to the quangos as "arms length bodies", John Reid has outlined plans for a Department of Health review which proposes a 25% reduction in staffing levels. The department has already announced a 38% reduction in the number of civil servants.
The review covers 42 separate quangos, employing more than 22,000 staff and weilding a combined annual budget in excess of £2.5 billion.
Mr Reid said in a written Commons statement that he wanted to see improved efficiency and better value for money.
"I want to see more staff and resources at the frontline delivering better patient care across the country," he said.
The review found duplication and some unnecessary regulatory and policy activities by quangos. Back-office functions such as human resources, finance, IT and estates could be rationalised, said the report. It proposed reducing overheads and integrating some functions.
Mr Reid said: "The arms length body sector does much good work. However it has grown over several decades and does not meet current health and social care needs or those of future generations.
"If left unchanged the arms length bodies would employ about 10 times the number of staff of the Department of Health at the end of its' restructuring programme."
(gmcg)
Referring to the quangos as "arms length bodies", John Reid has outlined plans for a Department of Health review which proposes a 25% reduction in staffing levels. The department has already announced a 38% reduction in the number of civil servants.
The review covers 42 separate quangos, employing more than 22,000 staff and weilding a combined annual budget in excess of £2.5 billion.
Mr Reid said in a written Commons statement that he wanted to see improved efficiency and better value for money.
"I want to see more staff and resources at the frontline delivering better patient care across the country," he said.
The review found duplication and some unnecessary regulatory and policy activities by quangos. Back-office functions such as human resources, finance, IT and estates could be rationalised, said the report. It proposed reducing overheads and integrating some functions.
Mr Reid said: "The arms length body sector does much good work. However it has grown over several decades and does not meet current health and social care needs or those of future generations.
"If left unchanged the arms length bodies would employ about 10 times the number of staff of the Department of Health at the end of its' restructuring programme."
(gmcg)
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