The UK government has awarded KPMG and EY a contract worth up to £456 million to train civil servants on skills including AI use, between 2026 and 2028. According to procurement data provider Tussell, this is the largest single contract given to Big Four consulting firms since records began in 2012. The deal comes despite Prime Minister Sir Keir Starmer's 2024 pledge to halve consultancy spending, which aimed to save taxpayers over £1.2 billion by 2026.

The £319 million portion going to KPMG represents nearly a quarter of its annual UK advisory net sales, while the £137 million to EY accounts for about 13 percent of its UK consulting income. Tory shadow chancellor Sir Mel Stride criticized the award, calling Labour's spending reduction promises "empty words." Meanwhile, Joe Hill of Re: State welcomed investment in AI training but emphasized the need for in-house capability building.

A Cabinet Office spokesperson stated the government remains committed to cutting consultancy costs, having reduced spending by over £600 million last year. The contract replaces an expiring arrangement and will serve as a stopgap until a planned in-house "national school for government" is established. Critics, including the Public Accounts Committee, have previously flagged concerns over how consultancy spending is classified and reported across departments.