Flemish government tightens consultancy spending rules and shifts taxes to reduce electricity bills

Flemish government tightens consultancy spending rules and shifts taxes to reduce electricity bills

2 months ago

The Flemish government is tightening the rules surrounding consultancy assignments. The region will introduce a test to demonstrate the added value of hiring external expertise and carefully record annual consultancy expenditures.

The government’s coalition agreement stated that “binding guidelines” would be introduced for hiring external expertise. The previous Flemish government faced strong opposition due to a lack of clarity surrounding consultancy spending. Last year’s report by the Court of Audit also pointed to carelessness in awarding consultancy assignments.

“External expertise will only be sought when it provides clear benefits”

A stricter framework is now ready. “The use of external consultants must be a conscious and responsible choice on the part of the government,” said minister-president Matthias Diependaele. “We are now establishing clear guidelines: external expertise will only be sought when it provides clear benefits,” reports 24brussels.

Pre-contract tests

Under the new rules, the government must first determine whether it has the necessary knowledge and expertise in-house. Hiring consultants will only be possible if the contract mainly involves providing advice, is carried out by independent experts, and is limited in time. “If one of these elements is missing, it cannot be considered consultancy,” the framework states.

If these conditions are met, a pre-contract opportunity test must be carried out for every contract worth more than 7,000 euros. The test will examine the duration of the contract, internal expertise, cost efficiency, and independence of implementation, among other things.

Improve internal expertise

According to minister of the Interior Hilde Crevits, the goal is to develop and improve internal expertise. “We have already taken steps within my authority and decided to hire ten more auditors for Audit Flanders, so fewer assignments will need to be outsourced,” Crevits said.

Consultancy assignments will be carefully recorded in the accounting system, and there will be annual monitoring via the consultancy register to ensure greater transparency.

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