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A staggering revelation has exposed a potential misuse of public funds, as a single quango boss raked in £145,000 in remuneration for sitting on the boards of nine government bodies, yet demonstrably failed to fulfil his duties by missing a quarter of the meetings he was supposed to attend. Martin Spencer held non-executive board member positions across a multitude of significant public sector organisations in 2022-23, including Ofsted, Companies House, the NHS Counter Fraud Authority, and the Criminal Cases Review Commission.
Analysis by the TaxPayers' Alliance has revealed that Mr. Spencer held more quango board positions than any other individual in the public sector during that period. Despite this extensive portfolio and the substantial financial reward that came with it, he was absent from 18 out of 65 meetings across these nine bodies. The reasons for Mr. Spencer's non-attendance remain unknown, raising serious questions about accountability and the value for taxpayer money.
This alarming statistic comes at a time when the size and efficiency of the state are under intense scrutiny. Sir Keir Starmer recently pledged to dismantle large quangos, starting with NHS England, while Chancellor of the Duchy of Lancaster Pat McFadden has instructed ministers to justify the existence of all quangos within their departments, hinting at significant closures later this year.
The TaxPayers' Alliance's broader analysis paints a concerning picture of the quango landscape. In 2022-23, the total remuneration for individuals sitting on the boards of government arm's-length bodies (ALBs) reached at least £125.8 million. Furthermore, the number of board positions across over 300 quangos has increased by 6 per cent since 2018-19, reaching a total of 4,605.
Mr. Spencer's extensive list of roles also included chairman of the Education and Skills Funding Agency (before its integration into the Department for Education), a member of the Legal Ombudsman, and a non-executive board member of the Submarine Delivery Agency. He was also appointed to the Civil Service Commission in 2021, an ALB tasked with safeguarding the impartiality of the Civil Service.
While Mr. Spencer's case highlights an extreme example, the analysis also points to a wider issue of potentially unchecked spending. Lord Hendy, now the rail minister, received the highest remuneration among non-executive board members in 2022-23, pocketing £316,000 for his role as chairman of Network Rail at the time.
The government's code of conduct mandates that public body board members play a "full and active role" in their work. However, the significant number of missed meetings by individuals like Mr. Spencer raises serious doubts about whether this code is being effectively enforced and whether taxpayers are truly getting value for money from these appointments.
The TaxPayers' Alliance is now urging the government to implement measures linking financial remuneration for quango board members to their attendance records. They also advocate for limiting the number of roles any single individual can hold, arguing that such measures would increase accountability and prevent potential overextension.
John O’Connell, chief executive of the TaxPayers’ Alliance, condemned the "massive expansion of the quango state," highlighting the significant control of taxpayers' money wielded by often "unknown figures running bodies that most have never heard of." He called on the government to ensure that the planned quango review leads to genuine abolition of unnecessary functions and a return of decision-making to democratic control, rather than just being a "smokescreen."
Mr. McFadden reiterated the government's commitment to "drive out waste and inefficiency across Whitehall, reducing duplication and bureaucracy" to save taxpayer money. He asserted that the ongoing review aims to fundamentally "re-wire the state" to deliver their "Plan for Change."
The case of Mr. Spencer serves as a stark reminder of the potential for misuse of public funds within the complex network of government quangos. As the government embarks on its review, the public will be watching closely to see if meaningful action is taken to ensure greater accountability and responsible stewardship of taxpayer money within these powerful, often unseen, organisations.
