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An Executive Agency also known as Next-step agencies are parts of a government department that are treated as managerially and budgetarily separate in order to carry out some part of the executive functions of the United Kingdom government, Scottish Executive, Welsh Assembly and Northern Ireland Executive. Executive agencies are "machinery of government" devices distinct both non-ministerial government departments, on the one hand, and non-departmental public bodies (or "quangos"), on the other, each of which enjoy a real legal and constitutional separation from ministerial control.
As of July 2002, there were 127 Executive Agencies. 92 of these report to Departments within UK central Government. The remaining 35 report to the Scottish Executive, Welsh Assembly or Northern Ireland Executive.
Agencies range from Her Majesty\'s Prison Service to the Driver and Vehicle Licensing Agency. The largest agency in terms of staff numbers is Jobcentre Plus, employing 100,000 people. The annual budget for each agency, allocated by Her Majesty\'s Treasury ranges from a few million pounds for the smallest agencies to £700m for the Court Service to £4bn for Jobcentre Plus. Virtually all government departments have at least one agency. The Ministry of Defence has 36, the most of any department.
The initial success or otherwise of Executive Agencies was examined in the Sir Angus Fraser\'s Fraser Report of 1991. Its main goal was to identify what good practices had emerged from the new model and spread them to other agencies and departments. The report also recommended further powers be devolved from ministers to chief executives.
A whole series of reports and White Papers examining governmental delivery were published throughout the 1990s, under both Conservative and Labour governments. During these the agency model became the standard model for delivering public services in the United Kingdom. By 1997 76% of civil servants were employed by an agency. The new Labour government in its first such report – the 1998 Next Steps Report endorsed the model introduced by its predecessor. The most recent review (in 2002, linked below) made two central conclusions (their emphasis):
The latter point, is usually made more forcibly by Government critics, describing agencies as "unaccountable Quangos" [1]
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