A review of the engagement and management of consultancies (incorporating both (a) and (b)) was carried out from July to November of 2003. The review examined how value for money in the engagement and management of consultants could be optimised. The Department adopted the findings of the review. This has resulted in a reduction in consultancy costs in each subsequent financial year as follows:
£ million 2003-04 112 2004-05 86 2005-06 53.6
Furthermore in the current financial year an enhanced internal approval process has been implemented for proposed consultancy engagements exceeding £50,000. This enables transparency of decision making, based on sound business case proposals for provision of best value for money in each case.
DTI does not have a specific annual budget for engaging workers on a consultancy basis. Consultancy requirements reflect specific and changing business needs within the Department. However our spend over the last five financial years has been as follows:
£ million 2001-02 64 2002-03 93 2003-04 112 2004-05 86 2005-06 53.6