Magazine article Public Finance

Public Sector Mergers 'Need Thinking Through'

Magazine article Public Finance

Public Sector Mergers 'Need Thinking Through'

Article excerpt

Whitehall and wider public sector reorganisation and mergers must be based on clear rationales and not political expediency, public sector leaders have warned.

'The government must make sure the need for any new body is well founded and not just based on short-term headlines,' Sir Philip Hampton, author of the Treasury's 2005 Hampton review on regulation told a National Audit Office conference on public sector mergers on June 25.

Hampton's comments follow widespread speculation that new Prime Minister Gordon Brown might embark on a radical shakeup of Whitehall - including the reorganisation of the Department for Environment, Food and Rural Affairs, which is expected to absorb the Department of Trade and Industry's energy remit.

But Anna Walker, chief executive of the Healthcare Commission and a former director-general for energy at the DTI, added her own warning about poorly thought-out mergers. …

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