Whitehall anti-sleaze unit shut down to cut costs

An anti-sleaze unit, in charge of protecting the Civil Service from bullying and policing the powers of special advisers, is to be scrapped by the Government to save money.

The Machinery of Government Unit, which also advises ministers on standards of propriety and adherence to the ministerial code, is a casualty of 17 per cent cuts being made in the Cabinet Office budget.

As well as policing the model contract for special advisers, which prohibits them from ordering civil servants to cross political boundaries, it advises ministers on whether their behaviour breaches the ministerial code of conduct. It also oversees the rules governing special advisers who leave government to stop state secrets leaking out.

The unit was set up in 2001 as part of the reforms of the Civil Service introduced by Sir Richard Wilson, a former cabinet secretary. Its staff of around 20 are to be dispersed throughout the Civil Service or employed by other Cabinet Office units. A few will work for the Cabinet Secretary, Sir Andrew Turnbull, who will be in charge of propriety issues.

Mark Oaten, chairman of the Liberal Democrat parliamentary party, said: "The jury is still out on the Government's ability to tackle sleaze and impropriety. Abolishing this unit doesn't bode well and begs the question of who will police the ministerial code."

Other units facing reorganisation are the Office of the e-Envoy and the Prime Minister's Delivery Unit.

The Office of the e-Envoy, formed in 1998 to lead the Government's move into the digital age, is to have at least a quarter of its £20m annual budget cut. The post was supposed to deal with internet policy across government. But Whitehall sources said it was outdated because each government department had its own IT unit. Responsibility for introducing broadband, the internet connection that is about 10 times faster than a dial-up modem, has recently been transferred to the Department of Trade and Industry.

The delivery unit was set up to ensure that Tony Blair's policy priorities are translated into action.