London Quangos spend £5.6 billion

A report from London Councils, the umbrella group that represents the London boroughs, looks at the efficiency and democratic accountability os public spending in the capital. Of the 73.6 billion total, £5.6 billion is spent by Quangos. Another £25 billion by national Government Departments.

London Councils asked PricewaterhouseCoopers to look at how the system could be improved. They suggest that savings of £1.6 billion could be achieved through localism - handing more power down to the borough councils. For instance if the NHS and the borough Council's social service departments were working together - rather than duplicating such a lot of their work - savings of £800 million are projected.

London Councils' Chairman Cllr Merrick Cockell says:

"We have long been aware that councils do not operate within a perfect system. The way public bodies are funded, and the number of different organisations working for similar or overlapping aims, unfortunately make waste inevitable.

"However, PwC's research has shown us a way to radically reduce London's burden on the public purse - while still improving the services we offer Londoners. Amidst the ongoing debate around the
public sector funding squeeze, we will be thoroughly examining their conclusions in the hope of setting out significant reforms for the capital in the coming months."

The full report is here.