- All arm’s length bodies subject to efficiency review
- Review to assess if particular ALBs should be “abolished or retained”
NHS England, the Care Quality Commission and other arm’s length bodies will be subject to an efficiency and performance review led by the Cabinet Office.
The terms of a review into all government arm’s length bodies were set out this week, with minister Jacob Rees-Mogg insisting there is an “urgent need for public service reform”.
The ‘public bodies review’ programme will consider whether ALBs “should be abolished or retained”, should continue to deliver all their functions, and whether they have an “effective relationship” with their relevant departments.
Other ALBs include the National Institute for Health and Care Excellence, Health Education England, and the UK Health Security Agency.
A guidance document says: “The outcome of this work should see powers returned to accountable ministers, greater efficiency and where appropriate, the state stepping back both financially and from people’s lives…
“Where it is agreed that an ALB should be retained… lead reviewers are required to identify where savings to resource departmental expenditure limits (RDEL) of at least 5 per cent can be made for an average review.”
ALBs will be reviewed by their parent department, starting with an initial self-assessment. If deemed necessary, a full-scale review will then be carried out by an external team.
A review was carried out by the Department of Health into the future of the health arm’s length bodies over a decade ago, with organisations at the time making significant budget cuts ahead of the review being published.
Mr Rees-Mogg said: “The pandemic has stretched public bodies and required them to respond and adapt at a pace and scale that is unprecedented. It has also demonstrated the urgent need for public service reform.”
Source
Government announcement
Source Date
26 April 2022
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