UK Government Plans New Quangos Amid Crackdown on Existing Bodies
In a recent edition of her weekly newsletter, Roula Khalaf, the editor of the Financial Times, highlights significant developments within the UK government, particularly regarding the establishment of new quasi-autonomous non-governmental organisations (quangos) in the fields of artificial intelligence (AI) security and health data management. Despite ongoing efforts by the Cabinet Office to reduce the number of arm's-length bodies operating across Whitehall, ministers are moving forward with these new initiatives.
The Department for Science, Innovation, and Technology has recently unveiled a business contract that outlines plans for the newly renamed AI Security Institute. This initiative seeks to position the department as an arm's-length body, which would allow it to operate with a degree of independence from direct government oversight while still receiving government funding. Quangos are typically characterised as agencies that conduct specialized functions but are not directly managed by government departments.
In a related announcement made on Monday, Prime Minister Sir Keir Starmer revealed his government's intention to establish a central research service dedicated to the storage of health data. Officials from the government have clarified that a final decision regarding the structure and integration of this service within the Department of Health and Social Care has yet to be reached. However, insiders have indicated that the preferred approach is to create this new service as a government-owned company, aligning it with the model of existing successful quangos.
Cabinet Office Minister Pat McFadden recently sent a directive to all Whitehall departments, requesting that they provide justifications for the continued existence of their quangos. McFadden's letter emphasises a broader effort to bring more decision-making power back under the control of ministers, suggesting that the government is taking a more hands-on approach in managing its public bodies.
The recent reports of new quangos being established come just three weeks after the government announced the controversial decision to abolish NHS England, which has often been cited as the worldâs largest quango. Government officials defended this move by arguing that excessive duplication existed between NHS England and the Department of Health, and that increased direct ministerial oversight was needed in health policy matters.
Critics of the government, including Alex Burghart, the shadow Cabinet Office minister, have expressed skepticism regarding the government's commitment to reforming the quango system. Burghart pointed out that while the government claims to be reviewing the necessity of existing quangos, it has paradoxically created approximately 30 new bodies since the recent election, raising questions about the sincerity of its reform efforts.
The Cabinet Office has made it clear that simply advising or engaging with stakeholders is insufficient grounds for maintaining a unit as an arm's-length body. According to the latest guidelines, only quangos that perform regulatory or advisory functions requiring genuine independence from ministers, or those that are essential for upholding the rule of law, should remain classified as such.
Government officials are expected to carefully scrutinise proposals for the new arm's-length bodies, including the AI Security Institute, during a review aimed at identifying redundant quangos. Beth Thompson, the executive director of policy and partnerships at the Wellcome Trust â a key partner in developing the proposed health data service â noted that a government-owned company structure is one of the primary models being considered, although no final decision has been made. Thompson remarked on the success of similar government companies, like Genomics England, emphasizing that an independent structure can provide the necessary freedom for effective operation.
Thompson also discussed plans for implementing a tiered pricing model for access to the health data, with commercial entities expected to pay higher fees compared to academic and public researchers. This model aims to establish a sustainable business framework, ensuring that any surplus revenues generated can be reinvested into the National Health Service (NHS) and the wider healthcare system.
Initial discussions regarding the transformation of the AI Security Institute into an arm's-length body began last summer. The goal of this initiative is to provide the organization with institutional independence, thereby reassuring private sector companies that they can operate without direct government interference. The institute is anticipated to oversee the enforcement of forthcoming legislation that will require advanced AI model developers to have their algorithms tested and validated.
As the government prepares to unveil this legislation, officials indicate that it will likely be included in the next Queenâs Speech, a significant event in the parliamentary calendar where the monarch outlines the government's agenda. It is important to note that the ultimate decision on whether to maintain, disband, or merge existing arm's-length bodies will rest with the respective Cabinet ministers, rather than the Cabinet Office itself.
A spokesperson for the Department of Health and Social Care has articulated a clear vision for the Health Data Research Service, describing it as a specialized entity with a defined purpose: to assist researchers in leveraging NHS data to expedite the discovery of life-saving drugs and enhance patient care.
