MINISTERS have authorised a huge increase in spending on quangos despite having promised to reduce their cost.

New figures released by the Cabinet Office show that the overall cost of the so-called “arm’s-length bodies” fell only because of the transferring of one of the biggest ones into a Whitehall department.

The winding-down of the Strategic Rail Authority, whose work is now carried out by the Department for Transport, resulted in a saving of £2.5 billion. Spending on the remaining quangos rose by £1.7 billion, leaving a net saving of £830m.

Gordon Brown promised a “bonfire of the quangos” before Labour came to power, claiming that they were “often government in secret, free from full public scrutiny”. But 13 out of 16 Whitehall departments failed to reduce their spending on quangos and seven departments created new ones, with more in the pipeline this year.

Francis Maude, shadow minister for the Cabinet Office, said: “People are crying out for more accountability and transparency in government. These figures confirm that Labour’s unelected, unaccountable quango state is not only alive and well but increasing at an alarming rate.

“Cutting quangos is yet another of Gordon Brown’s broken promises.”

Quango chairmen and consultants, many closely connected to Labour, often earn huge sums for part-time roles.

The biggest rise in staff was in quangos linked to the Home Office, which expanded by 1,671 employees last year, followed by Department of Health quangos, which added almost 600 workers.

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