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As more services across government are put out to tender we will be challenging ministers to do better than this.
Mr Burden said he would be challenging ministers on this "bluntly crass" and "potentially anti-democratic" policy when the Commons returns in January.
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Asked about Mr Hilton's input in Downing Street, Sir Jeremy said he was "a challenging person" and it had been his job to "challenge" ministers to think differently.
Mrs Thatcher narrowed the scope within which civil servants could challenge ministers, but they were still seen as partners.
Senior civil servants are unwilling to challenge ministers over excessive spending because it might damage their career prospects, Whitehall's spending watchdog has said.
What we deserve to see climbing out of the wreckage of this is a reformed Whitehall where civil servants with years of experience feel emboldened to challenge ministers.
Its civil servants are fine people, with a proper sense of duty, but few were ever teachers and so lack the experience to challenge ministers on what will work in the classroom.
He said he was particularly surprised that Gus O'Donnell (now Lord O'Donnell), the former cabinet secretary, had told him that the first duty of civil servants was to challenge ministers' proposals, not to implement them.
Andrew Tyrie, the member for Chichester who is chair of the all party group on rendition, has challenged ministers to abandon the proposals which he says are more in tune with a dictatorship than a democracy.
"Accounting officers appear to lack confidence to challenge ministers where they have concerns about the feasibility or value for money of new policies or decisions, not least because standing up to ministers is seen as damaging to a civil servant's career prospects," the report said.
Mr Iredale also challenged ministers to work with heads "in an open and honest way" to develop policies for schools.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com