4 Public bodies reform
31. The Coalition's Programme for Government stated
that it would "reduce the number and cost of quangos".[38]
Our 2011 Report Smaller Government: Shrinking the Quango State
found that the 'bonfire of the quangos' was poorly managed, and
we expressed doubt as to whether accountability would be improved
by moving functions in-house.[39]
By 2014 we found that significant reforms of public bodies had
been implemented, but had not been coordinated with Civil Service
reforms and health reforms.[40]
We were unconvinced that the reforms had in fact increased accountability,
their main aim, as accountability does not depend on organisational
form. We concluded that the next phase of public bodies reform
must address both formal and informal relationships, or it would
achieve far less than the Government hoped. We called for a more
professional and transparent approach to the management of the
state beyond departmental borders.[41]
32. We were disappointed that the Government response
merely recognised "that there are issues with the current
classifications process", as we had called for the establishment
of a clear taxonomy of types of public bodies, so that it is clear
how each is governed and sponsored.[42]
Our successor Committee will have to follow this up once the Cabinet
Office publishes the results of its current review of the classification
system.
33. In 2011 we found that Departments were not clear
about how they should interact with the bodies they sponsor; they
were failing to strike the right balance between oversight and
independence.[43] We
returned to the quality of sponsorship in 2014, saying the Cabinet
Office could promote good practice and highlight examples of success,
as sponsorship of arm's-length bodies was, we concluded, a vital
skill set.[44] The Government
response was encouraging on this point, agreeing strongly with
us on the importance of sponsorship skills, and setting out plans
for improvement, including new training.[45]
38 HM Government, The Coalition: our programme for government,
March 2010 Back
39
Public Administration Select Committee, Fifth Report of Session
2010-11, Smaller Government: Shrinking the Quango State, HC 537,
January 2011 Back
40
Public Administration Select Committee, First Report of Session
2014-15, Who's accountable? Relationships between Government and arm's-length bodies,
HC 110, November 2014 Back
41
As above Back
42
Public Administration Select Committee, Sixth Special Report of
Session 2014-15, Who's accountable? Relationships between Government and arm's-length bodies: Government Response to the Committee's First Report of Session 2014-15,
HC 1129, March 2015 Back
43
Public Administration Select Committee, Fifth Report of Session
2010-11, Smaller Government: Shrinking the Quango State, HC 537,
January 2011 Back
44
Public Administration Select Committee, First Report of Session
2014-15, Who's accountable? Relationships between Government and arm's-length bodies,
HC 110, November 2014 Back
45
Public Administration Select Committee, Sixth Special Report of
Session 2014-15, Who's accountable? Relationships between Government and arm's-length bodies: Government Response to the Committee's First Report of Session 2014-15,
HC 1129, March 2015 Back
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