The four largest accountancy firms—Deloitte, EY, KPMG, and PwC—have secured £1.5 billion in public sector contracts so far in 2026, marking the second-highest annual total on record outside emergency pandemic spending. This figure surpasses the combined contracts awarded to these firms in 2025 and reflects a significant increase in government consultancy work.

According to data from Tussell, a government contracts analytics organization, Deloitte has obtained the largest share of these contracts by value, securing around £650 million through 108 agreements. Notably, six contracts with the Home Office account for £508 million of Deloitte’s overall total, including projects supporting the Exit Checks programme, which aims to enhance immigration system oversight.

KPMG and EY also landed substantial contracts, including a joint agreement worth nearly £456 million to provide learning and training services to civil servants until 2028. This is the largest single Cabinet Office contract awarded to the Big Four since records began in 2012. KPMG has won 113 contracts valued at approximately £413 million, while EY secured 55 contracts totaling £261 million. PwC has obtained 90 contracts worth about £212 million, which include deals with the Department for Energy Security and Net Zero for grant administration and energy efficiency support, valued at £61 million and £45.5 million respectively.

The increase in consultancy spending occurs despite Labour’s 2024 pledge under leader Sir Keir Starmer to halve government expenditure on external consultants. Rachel Reeves, former shadow chancellor, had criticised the rise in consultancy costs—up nearly fourfold over six years—and committed to reducing consultancy spending by 50% during the next parliamentary term. The Labour party’s plan includes establishing a “school of government” to develop civil service skills internally, which partially explains the large contract awarded to KPMG and EY for civil servant training.

The current Conservative government has previously aimed to cut non-essential consultancy spending, targeting savings of over £1.2 billion. Officials maintain that central government consultancy expenditure has decreased by more than £600 million in 2024-25, surpassing a £550 million reduction target and reaching a five-year low. The government stresses that the Tussell figures cover wider public sector spending, including local authorities and arms-length bodies, which are not under ministerial control and therefore not part of central government targets.

However, the Commons Public Accounts Committee highlighted challenges in monitoring consultancy use across government, noting that the Cabinet Office lacks reliable data on how frequently or extensively departments engage external consultants. Central spending controls for consultancy were removed in 2023, contributing to concerns about oversight.

Critics argue that heavy reliance on private consultancy firms has eroded in-house expertise within Whitehall and public bodies, urging ministers to take greater responsibility for skills development and project delivery rather than outsourcing crucial functions.

A government spokeswoman reaffirmed the commitment to reducing consultancy costs further, citing plans to achieve over £700 million in annual savings by 2028-29. Meanwhile, the Big Four firms declined to comment on the contracts and spending data. The head of the Management Consultancies Association emphasized the role of consultancy in enhancing productivity and government delivery amid fiscal constraints.