The government plans to scrap 150 quangos as part of its reform of arm’s length bodies, announced in today’s Budget.

Liam Byrne, chief secretary to the Treasury, revealed that the government would cut 20% of the UK’s quangos by 2012-13 in a bid to save up to £500m a year in public spending.

The announcement is the result of a review of arm’s length bodies that was launch in the summer of 2009 as part of the public value programme. Among the recommendations made in the final report, Reforming Arm’s Lengh Bodies, is a clause forcing any new quangos to share their property with other government bodies.

It forms part of the government’s drive to create £11bn in operational savings  by 2012-13, announced in December’s Pre-Budget Report.

Property occupiers to be axed include half of Department for Culture, Media and Sport’s advisory bodies, the National Community Forum, and the British Waterways. Alongside other ALBs being merged, this will save £1.3bn, according to the government.

Byrne said: “These reforms show how we’re streamlining central government in order to prioritise frontline public services, while halving the deficit over four years. Total government spend through ALBs now being merged or abolished is £1.3bn”

“The reforms announced today will reduce the number of ALBs by over 140, and restrict the way they operate. This will save at least £500m by 2012-13 and change the ALB landscape for good.”

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