Quango ‘savings’ go up in flames

Ministers have underestimated the cost of implementing their “bonfire of the quangos”, the Whitehall spending watchdog has warned.

By The Newsroom

Published 20th Jan 2012, 06:00 BST

The Government said that the cull would save the taxpayer £2.6bn by 2014/15.

Ministers wanted to axe 262 public bodies in the biggest administration restructuring for decades.

However, the National Audit Office (NAO) said that the transition costs would be at least £830m – almost double the £425m Ministers estimated when they introduced the plan in October 2010.

As a result, the Government will now have to find total savings of £3.5bn if they are to meet the 2014/15 target.

Government National Audit Office