Between the lines
5. PAC conclusion: Defra is over-reliant on contractors because it struggles to
recruit and retain the people with the digital skills it needs.
Public sector struggles to recruit skilled workers because of the way system has been created to facilitate hiring big consultancies instead.
This is because public sector can't pay the market rates directly to employees, but they can pay over the market to big consultancies (market rate employee salary plus huge big consultancy mark up).
This looks like a nudge to abandon cheaper contractors and outsource the work to the usual suspects, as there seems to be no suggestion of how are they going to adjust the pay scales to attract talent.
Senior civil servants are certainly against it: "Why some teenage looking pimpled geek basically sitting behind tiny laptop in the comfort of home sofa should be earning more money than me?" and it's back to square one.