Clarke may hive off forecast unit
Wednesday 08 January 1997
The move threatens the jobs of up to 45 staff at the Treasury, but if the service is contracted out they will be allowed to mount an in-house bid in competition with private sector economic forecasters.
The idea of contracting out the forecasting function was floated in late 1994 in a Treasury review of its own expenditure which has since led to a sharp reduction in the number of civil servants.
But at the time Mr Clarke decided to delay the detailed review of the forecasting function for a couple of years.
The three-month consultants' study is to look at the feasibility of contracting out the central economic forecast and the forecasting and monitoring of public finances.
Other areas would include the background work required to produce the economic assumptions made in public expenditure planning, and the assessment of the accuracy of forecasts, by looking at what happens in the economy.
The Treasury said that if the consultants' report confirmed that a "market test" was feasible, a formal contract specification would be issued in late spring or early summer inviting outside organisations - and Treasury staff, if they wished - to make bids.
The aim would be to complete negotiations in time for the successful bidder to take over responsibility for forecasting from the end of this year.
The Treasury said the study would include the security implications of allowing an outside organisation to have access to sensitive forecasting information that is a key part of the Budget announcement.
It would also examine options such as moving the forecasting function entirely outside the Treasury or having civil servants working alongside a private firm.
Comment, page 15
- 1 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 2 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 4 Alex Salmond: 'The rocks would melt with the sun before I'd ever set foot in the House of Lords'
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Ice Bucket Challenge: US firefighter Tony Grider dies after participating in charity craze near power lines
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...