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Health Secretary Andrew Lansley expects to deliver savings of more than £180m by 2014/15 with drastic cuts to government healthcare arm's-length bodies (ALBs). The status of most of the 18 such bodies under review will change or they will be abolished.

The Department of Health's Report of the arm's-length bodies review, which accompanies the NHS White Paper, also holds up the prospect of a new regulator for research. The Academy of Medical Sciences has been asked to conduct a review of the regulation and governance of medical research and should report in the autumn. The government hopes to streamline the process of gaining permission to undertake research by creating one stand-alone body to act as research regulator. This would replace a number of ALBs.

To be abolished are the Health Protection Agency (HPA), the National Patient Safety Agency (NPSA), the Alcohol Education and Research Council, the Appointments Commission, the General Social Care Council, the National Treatment Agency for Substance Misuse and the NHS Institute for Innovation and Improvement.

Lansley indicates that bodies such as the Human Fertilisation and Embryology Authority and the Human Tissue Authority do not have much to look forward to either, with their role as an ALB being retained 'for the time being' with the prospect of their functions being transferred to the Care Quality Commission (CQC).

The CQC is one of the few bodies to emerge unscathed, although it has recently been through a battering and will be concentrating on inspecting healthcare providers and not commissioners.

The National Institute for Health and Clinical Excellence, the Health and Social Care Information Centre and the Medicines and Healthcare Products Regulatory Agency (MHRA) are all endorsed, with the first two being put on a firmer statutory footing and the MHRA being asked to make sure it is cost effective. Monitor is being retained and made an economic regulator.

The HPA will lose its statutory role and its functions are destined for the new Department of Health public health service. Similarly, the NPSA's safety role will go to the NHS Commissioning Board.

NHS Blood and Transplant will retain its role but its Bio-Products Laboratory is expected to become a DH-owned company.

Uncertainty too surrounds the NHS Business Services Authority, which encompasses activities such as NHS Prescription Services and supply chain contract management. It will be retained in the short-term pending 'a commercial review to identify potential for increased commercial opportunities'. Some of the authority's functions may subsequently be hived off.

The changes, which are due to be completed by 2014, will affect many of the current 18,000 ALB staff. The consultation paper describes the above processes as 'simplifying the national landscape'.

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