Whitehall outsourcing scheme cost £4m more than it saved, MPs say
Why are we not surprised? Does anyone have an example in a rural or any public sector setting of back office arrangements which have really saved money whilst bolstering local discretion and accountability? This story tells us:
A scheme to reduce government expenditure by outsourcing back-office functions has cost taxpayers more money than it has saved, MPs have said.
Officials had hoped the programme could save up to £400m a year, but after two-and-a-half years of operation the scheme has saved £90m while costing £94m.
Criticising what it described as “ineffectual” management of the scheme, the public accounts committee warned ministers they must act to improve leadership and governance to prevent more money being wasted.