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Warning over Whitehall payroll

11th March 2011

Whitehall is facing a growing payment bill due to the expanding ranks of civil service middle managers, the government's spending watchdog has warned.

The National Audit Office has said that despite staff numbers falling one per cent in the past ten years, there has been a 10 per cent increase in real terms of staff costs, amounting to £16.4bn annually.

In its report, the watchdog warned the inability of Whitehall departments to control their staff costs could undermine the government's attempts to tackle the deficit.

Public accounts committee chair Margaret Hodge said: "It is just not acceptable for management layers and bureaucracy to build up in the Civil Service with nobody in government controlling what was happening."

Cabinet Office minister Francis Maude said the government had already taken action to control civil service numbers.

"It is incredibly important that pay and benefits are kept under control so we can protect civil service jobs on the front line," he said.

A report from the House of Commons transport committee suggests fraud, including "staged accidents", are driving up the cost of motor insurance.

The committee recommends the insurance industry should back a dedicated police unit to prevent false insurance claims.

Prime minister David Cameron will today head to Brussels as EU leaders hold an emergency meeting on Libya.

On the eve of the summit, Cameron and French president Nicolas Sarkozy sought to ratchet up pressure on Tripoli, writing to EU partners to urge them to unite in calling for Colonel Gaddafi to give up power with immediate effect.

Deputy prime minister Nick Clegg launches the Liberal Democrats' spring conference with a rally in his constituency, at Sheffield City Hall.

In an interview with the Independent, the Liberal Democrat leader signalled that he was ready to strike a more independent tone by disagreeing publicly with David Cameron.

A YouGov survey for The Sun has put the Lib Dems on just 9 per cent, behind their Conservative coalition partners on 34 per cent and Labour on 45 per cent.

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