Latest Public Sector News

27.02.13

Cabinet Office must do more to maximise savings – NAO

The NAO has called on the Cabinet Office to create more effective levers to create savings in procurement.

Expenditure on common goods and services is more centralised, there is increased participation by SMEs and clearer lines of responsibility at the centre, the report showed.

But the Government still has “ineffective” governance structures, unrealistic targets, incomplete data and weaknesses in contract management, and is not maximising the potential for savings through centralised procurement.

Amyas Morse, head of the NAO, said: “The Cabinet Office will have to lead a major cultural shift across government if the centralising of buying goods and services is to deliver the significant benefits on offer.

“There are signs of real progress, but the success of the reforms cannot depend on whether departments choose to cooperate. Departments must commit as much of their procurement expenditure as possible to central contracts and the Government Procurement Service must be held accountable for its performance.”

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Image c. Benjamin Nolan

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