Availing the counseling services from external agency last year, NHS trusts in England squandered more than £300m, which remained a contentious issue, as it cut the jobs of a number of regional staffers. The money spent under the counseling services was used for taking advices on matters relating to legal contracts, human resources and media work.

Taking management consultancy from outside agencies cut the jobs of nurses at frontline services. The critics are of the view that the money could have been used for treating patients with chronic diseases.

In the financial year 2009-10, primary care trusts (PCTs) and strategic health authorities (SHAs) spent £313.9m on consultancy services, as per the figures. But, the NHS Confederation, an embodiment of trusts, stated that the money used was just 1% of the NHS budget and that was not misused, as sometimes there is a requirement of outside services to improve performance.

Last month, the Government's health white paper recommended eliminating SHAs and PCTs and converting them into GP-led conglomerates.

According to Health Secretary, Andrew Lansley, he was shocked by the amount of expenditure spent on counseling services and thus he directed PCTs and SHAs to cut their 46% of the management costs in the coming four years.

The spending was also alleged by Dr. Peter Carter, Chief Executive of the Royal College of Nursing. He is of the view that such a huge spending in a year cannot be justified.

He said, “There are currently more managers within the NHS than at any point in its history, so why SHAs and PCTs are buying in additional expertise".