Key facts
- Labour has pledged to reduce spending on external consultants.
- Ben Terrett, founder of Public Digital, advocates for engaging smaller, diverse consulting firms.
- Government spending on management consultancy contracts increased to £1.44bn in the last fiscal year.
- Public Digital is expanding its private sector business, which currently represents 25-30% of its revenue.
- The firm aims for £50m turnover and 200 employees by 2030.
Ben Terrett, founder of the digital consultancy Public Digital, has urged the Labour party to look beyond the traditional 'Big Four' consulting firms and diversify its spending with smaller, regional businesses. Terrett, who was instrumental in the creation of Gov.uk, stated that while Labour's pledge to cut taxpayer spending on external consultants is valid, the government's reliance on private firms stems from a previous loss of in-house skills.
Despite the Treasury's vow to halve spending on external advisers, data from Tussell indicates that spending on management consultancy contracts actually rose to £1.44bn in the government's first year, up from £1.28bn the prior year. Terrett emphasized that Public Digital builds its reputation on 'lived experience,' hiring individuals with direct experience in government and large institutions. The firm, which has clients like the IRS, UN organizations, and the World Bank, is increasingly focusing on the private sector, now accounting for 25-30% of its business, particularly targeting large, bureaucratic entities.
Terrett challenged the assumption that the private sector is always more technologically advanced, suggesting that some UK government systems, like passport renewal, outperform private sector counterparts. He cited a case study where Public Digital helped BT achieve a 23% reduction in technology expenditure. The consultancy is specifically targeting sectors close to government functions, such as the water industry, believing its expertise can improve efficiency without requiring new funding.
Public Digital maintains its competitive edge in a crowded market through word-of-mouth referrals and a proven track record, often being called upon when larger consultancies have failed. The firm is experiencing approximately 30% annual growth and aims to reach a turnover of £50 million with 200 employees by 2030.