Labour creates yet another ‘massive quango’ to tackle the size of the state
Labour's First Secretary of State, Louise Haigh, set out plans to "rewire" the state, including three new taskforces, but faced Conservative criticism for simultaneously creating a new civil service body, the OneGov Delivery Agency. Tory deputy leader Alex Burghart accused the government of establishing "yet another massive quango" even as it claimed to be streamlining Whitehall, arguing this would leave ministers responsible for key services without giving them real control over them.
Burghart said the new agency would oversee government recruitment, civil service pensions, shared services and security vetting, along with "considerable public money", while ministers retained accountability but lost power. Haigh countered that the central civil service is expected to shrink under Andy Burnham's devolution plans, despite Conservative claims that headcount had risen by 11,000 since the general election. She also faced questions over the Treasury's continuing dominance, with Burghart suggesting plans for the new "Number 10 North" hub to lead on economic growth had been watered down, though Haigh insisted some functions had been transferred from the Treasury to the new unit.
In short
- Labour creates OneGov Delivery Agency amid pledge to shrink the state
- Tories call it a "massive new quango" reducing ministerial control
- Row also breaks out over Treasury's continued power versus Number 10 North
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A dedicated OneGov Delivery Agency could consolidate recruitment, pensions, shared services and security vetting, reducing duplication and giving government a clearer way to deliver cross-department reforms. Haigh’s case is that this reorganisation can accompany a smaller central civil service as more powers move to local government, so creating a coordinating body need not mean expanding the state overall.
The case against
Creating another central agency risks adding administrative layers while the government promises to streamline Whitehall. If ministers remain accountable for services but the agency controls important functions and public spending, responsibility and practical authority may become harder to align; critics also question whether the wider plans will meaningfully reduce central control.
Explained simply
The civil service is the permanent workforce that supports ministers and runs government departments. Some services, such as recruitment, pensions and security checks, can be managed centrally or by separate public bodies, while ministers remain answerable to Parliament for how government works.
The debate is about how much authority should sit with ministers, departments and central government bodies. Labour says its plans are intended to reorganise the state and support devolution, which transfers some decisions from Westminster to local leaders; the Conservatives question whether adding a central agency fits with reducing the size of government.