Political reporter
Sir Keir Starmer will pledge to slash the costs of regulation with an “active government” in a speech later.
He will take aim at a “cottage industry of checkers and blockers slowing down delivery for working people”, as he argues the state has become bigger but weaker.
New AI and tech teams will be sent into public sector departments to drive improvements in efficiencies.
It comes after Sir Keir told his ministers they should take more responsibility for decisions, rather than “outsourcing” them to regulators.
A push to reduce the role of quangos – or non-governmental bodies – is expected to be part of the prime minister’s plan.
Incoming governments have often sought to cut the number of quangos – but what are they and what do they do?
What is a quango?
Quango stands for Quasi-Autonomous Non-Governmental Organisation but the government calls them “arm’s length bodies”. They are organisations funded by taxpayers but not directly controlled by central government, such as regulators, cultural institutions and advisory bodies.
They range from huge organisations like NHS England and HMRC, to smaller bodies like the Gambling Commission and the British Film Institute.
How many quangos are there?
The number of quangos has fallen by more than half since 2010 but there are still more than 300 across the UK.
Under the Conservative-Liberal Democrat coalition nearly 300 were axed – dubbed the “bonfire of the quangos” – in an attempt to improve accountability and cut costs.
Despite Sir Keir indicating he would also like to reduce the role of quangos, the new Labour government has set up more than 20 since winning power.
These include Great British Energy, which will invest in renewable energy to help meet the government’s clean power goals, and the Border Security Command, which aims to tackle small boat crossings.
Asked earlier this week if the government was planning another “bonfire of the quangos”, Downing Street said the PM wanted to see a more “active and agile state”, rather than “outsourcing” decisions to other bodies.
How much do they cost?
Almost 60% of day-to-day government spending is channelled through quangos, with 90% of this going to the largest 10 bodies.
The total budget for quangos in 2022/23 – the latest published figures – was £353.3bn.
Why are they controversial?
Campaign groups like the TaxPayers’ Alliance have long criticised quangos, claiming they allow ministers to dodge responsibility for mistakes and can be inefficient and costly.
The Institute for Government think tank says in some cases scrapping public bodies can save money and improve how services are delivered.
It gives the example of how merging JobCentre Plus into the Department for Work and Pensions helped cut the department’s workforce and office space by a third.
But the think tank argues abolitions also cost money and time in the short term, with services disrupted when powers are transferred.
Moving activities into departments, while improving accountability, can also dilute expert knowledge.
