May 20 2004
Health Secretary John Reid today outlined parameters for further reductions in Whitehall bureaucracy so that increased resources can be channelled directly to frontline NHS patient care.
In a written Commons statement John Reid set out the findings of the first stage of the Department of Health's review of its 'Arms Length Bodies'.
In line with Sir Peter Gershon's review of public sector efficiency and the Department's own principle of devolving responsibility to frontline NHS and social care, the review has concluded that:
- there are too many overlapping and duplicated functions;
- there are some unnecessary regulatory and policy activities;
- back-office functions such as human resources, finance, IT and estates could be rationalised;
- many bodies could be merged, thus reducing overheads and integrating similar functions
- some bodies could be given independent status, with greater stakeholder control
As a result, John Reid has decided that by 2007/08 there will be a:
- 50% reduction in the number of arms length bodies;
- saving in expenditure of £0.5 billion;
- reduction in posts of 25%
The review covers 42 separate arms length bodies, employing more than 22,000 staff. The combined annual budget is currently more than £2.5 billion.
John Reid said:
"I want to see more staff and resources at the frontline delivering better patient care across the country. I want to see improved efficiency, reduced bureaucracy and better value for money. The Department of Health is leading the way and we have already announced that we are cutting the number of civil servants by 38%. But it's important that this shift in the balance of power away from Whitehall to patients and frontline staff in the regions is carried out across the NHS.
"Now the first stage of the review has made clear that there is considerable scope for further savings among the national functions sponsored by the Department of Health.
"The arms length body sector does much good work. However it has grown over several decades and does not meet current health and social care needs or those of future generations. If left unchanged the arms length bodies would employ about 10 times the number of staff of the Department of Health at the end of its' restructuring programme.
"Changes on this scale would mean that considerable extra resources could be re-deployed on the ground.
"The next stage of the review will involve consulting with individual bodies on proposals for merger, rationalisation or abolition. This should be completed by the end of June, so that the final outcome can be announced before the summer recess." http://www.dh.gov.uk/
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