27 February 2009
By David Williams
Local authorities could save millions of pounds every year by improving their procurement practices, according to a government-commissioned report.
The Review of arrangements for efficiencies from smarter procurement in local government, led by ex-Westminster Council chief executive Bill Roots, aims to increase value for money for bought-in services.
The review recommended the appointment of a local government efficiency ‘champion’, and strengthening the role of Regional Improvement and Efficiency Partnerships to make advice and information on the best deals more readily available to councils.
Roots said local authorities should forge better links with the voluntary sector and social enterprises and that Rieps should provide online resources such as model contracts.
The Department for Communities and Local Government has endorsed the report’s findings and a plan for its implementation will be announced in April’s Budget.
Local government minister John Healey said the savings could knock £90 off the average council tax bill. ‘The recommendations are straightforward suggestions to help councils, and using Rieps to compare the best deals could make a real difference,’ he added.
There are nine Rieps, which were created last year to allow councils to collaborate on cost-cutting. Councils spent £42bn on external contracts in 2007 and they have been set annual efficiency saving targets of £1.5bn.
James Fothergill, CBI head of public services policy, said: ‘Any local authority that claims there is no more fat to be trimmed needs to look harder for new ways of doing things.’ He said the key to making savings lay in effective partnerships.
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