openDemocracy’s analysis looked at consultancy work awarded to 14 of the sector’s biggest companies – including Deloitte, KPMG, EY and PricewaterhouseCoopers – and made public in the past ten months.
It reveals how consultants have continued to win eye-watering sums from Boris Johnson’s government.
Last year, analysis found that Deloitte alone had been handed 26 contracts worth up to £278.7m. But details of several more contracts with the firm have now been published, totalling more than £10m, including work on the government’s COVID pass programme.
KPMG was awarded a £4m contract by the Department for Transport to research the pandemic’s impact on Transport for London.
Another firm, PA Consulting, has been awarded a string of COVID-related contracts by Whitehall, including work on ventilators and testing.
The government also paid consultancy firm McKinsey the equivalent of £14,000 a day to create a replacement for Public Health England, in May 2020.
Many consulting companies have enjoyed healthy profits through the pandemic, with top bosses receiving huge payouts.
Partners at Deloitte were set to take home a £1m payout last year according to reports, while partners at the American firm Boston Consultancy also received £943,687 each – after it won a string of UK government contracts.
And PWC’s chair Kevin Ellis saw his profit share rise to £4.4m in 2021 after it won millions of pounds worth of deals from Whitehall. In its annual report last year, PWC said it had helped the UK government “to enable economic repair”.
“Work that could and should have been done within government has instead been done at jaw-dropping day rates by private consultants,” said Jolyon Maugham, the director of the Good Law Project, which has taken the government to court over different COVID contracts.
He added: “This – the inevitable consequence of years of austerity – is expensive for taxpayers and suboptimal for outcomes. We need to stop sacrificing efficiency at the altar of small-state ideology.”
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