---
title: "KPMG Secures £223 Million UK Government Contract Amid Plans to Reduce Consultant Spending"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-08-27T03:51:17+00:00"
modified: "2024-08-26T18:54:35+00:00"
date: 2024-08-27
canonical: "https://stockmark.it/kpmg-secures-223-million-uk-government-contract-amid-plans-to-reduce-consultant-spending/"
category: "Government"
categories: ["Government", "Public interest"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-08-26T195420.702.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# KPMG Secures £223 Million UK Government Contract Amid Plans to Reduce Consultant Spending

**Published:** August 27, 2024
**Author:** Stockmark.IT Website
**Categories:** Government, Public interest
**Featured image:** ![KPMG building at sunset. The KPMG logo is visible. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-08-26T195420.702.jpg?fit=1200%2C800&quality=89&ssl=1)

---

In a surprising turn of events, KPMG, one of the Big Four accounting firms, has been awarded a substantial £223 million contract by the UK government to provide training for civil servants. This development comes at a time when the Treasury has outlined plans to significantly reduce Whitehall’s dependence on external consultants.

The 14-month deal, which commenced this month, will see KPMG managing learning and development services across Whitehall. The firm will be responsible for overseeing courses on various topics, including policymaking, communications, and career development.

The maximum value of the contract represents nearly 8% of KPMG’s annual UK revenues, making it the second-largest public sector contract ever awarded to the firm, according to data provider Tussell. Interestingly, this is not the first time KPMG has secured a substantial public sector contract. The firm previously held a separate learning and development deal with the Cabinet Office worth £237 million, which is set to expire in October.

The awarding of this contract signifies a return to positive relations between the government and KPMG. In 2021, the firm had temporarily stopped bidding for UK government contracts following a threat by the Cabinet Office to ban it from winning public sector work due to its involvement in a series of scandals. However, KPMG resumed bidding for public sector contracts in 2022.

The Labour government has committed to halving Whitehall spending on consulting firms during this Parliament. Chancellor Rachel Reeves recently ordered departments to stop all “non-essential spending” on external consultants. The government spokesperson clarified that the KPMG contract was agreed upon before July’s general election and that any expenditure under the contract must represent good value for money.

The Treasury estimates that reducing the government’s reliance on advisory firms will save £550 million in the 2024-25 financial year and an additional £680 million in 2025-26 when the policy to halve total spend on consultants comes into force. These savings will help fund significant public sector pay rises, according to the chancellor.

While the consulting industry argues that bringing in specialists for short-term projects is more cost-effective than employing them full-time in government departments, critics maintain that Whitehall’s reliance on expensive external advisory firms wastes money and prevents the UK’s civil service from developing valuable skills in-house.

As the government moves forward with its plans to reduce spending on consultants, it remains to be seen how this will impact the relationship between Whitehall and firms like KPMG. The outcome of this contract and its effectiveness in training civil servants will undoubtedly be closely monitored by both the government and the public.

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