The government has increased the amount it spends on consultants by a third to £2.8bn between 2003-04 and 2005-06, according to a Public Accounts Committee report published today.

IT and project management skills were cited as the most frequently purchased, accounting for 54 per cent of total spending on consultants.

The report says departments are using consultants to supply core skills, are failing to go out to tender to keep costs down and are not ensuring the best use is made of those taken on to spread skills among departmental staff.

Figures from the National Audit Office say IBM was paid £275m in 2005, in LogicaCMG £175m, Accenture £130m, PA Consulting £102m and Capgemini £85m.

'It is impossible to believe that the public are receiving anything like full value for money from this expenditure,' said Committee chairman Edward Leigh. 'In fact, a good proportion of it looks like sheer profligacy.'

The committee says a crackdown could save £500m a year. Departments are being urged to use internal resources and plan to recruit staff with the skills they require.

The report says consultants 'are routinely used on key government initiatives such as the Identity programme at the Home Office and the Capability Review programme at the Cabinet Office'.