KPMG UK has been awarded a government contract worth up to £223 million to provide training and development services to civil servants across Whitehall.
This represents the second-largest public sector contract ever granted to the Big Four firm.
The 14-month contract with the Cabinet Office, beginning this month, will see KPMG overseeing various courses on policymaking, communications, and career development. This lucrative deal highlights the restoration of positive relations between the government and KPMG following a period of strained ties due to the firm’s involvement in previous scandals, Financial Times reports.
However, the timing of this contract coincides with the Labour government’s commitment to reducing reliance on external consultants and halving Whitehall spending on consulting firms. The contract was agreed upon before the recent general election and a UK government spokesperson stated that it “represents a maximum limit” and any expenditure must demonstrate “good value for money”.
While the consulting industry advocates for the cost-effectiveness of short-term specialist engagements, critics argue that reliance on external firms hinders the development of valuable skills within the civil service.