By David Scott in Edinburgh
30 July 2009
Better management is needed to reap the full benefits of public sector purchasing schemes, according to Scotland’s spending watchdog.
In a report published on July 23, Audit Scotland said the public sector had saved about 3% a year since 2006 as a result of improved procurement.
But ‘weaknesses in programme management’ had contributed to delays in implementing some planned changes, the watchdog found. Its report, Improving public sector purchasing, concluded: ‘Better information on costs, savings and other benefits is needed to demonstrate the level of improvement and impact of the programme.’
Scottish public spending on goods and services is worth £8bn a year. The study assessed progress made since a 2006 review carried out by a leading public procurement expert, John McLelland.
He concluded that urgent action was needed across the public sector to improve the purchasing of goods and services. In response, the former Scottish Executive introduced a public procurement reform programme, of which a major feature was an increase in the use of collaborative contracts.
The public sector is estimated to have saved a total of £327m in the first two years of the programme, which has cost £61m so far to implement. The most successful sector was health, which introduced 150 new contracts and made savings of £54m in the two years to 2007/08.
But deputy auditor general Caroline Gardner said the current economic climate meant that the public sector needed more than ever to find cash savings without cutting services or quality.
She added: ‘The public sector is improving its purchasing and has the foundations in place for further progress. But progress until now has been variable and slower than expected.’
30 July 2009
Better management is needed to reap the full benefits of public sector purchasing schemes, according to Scotland’s spending watchdog.
In a report published on July 23, Audit Scotland said the public sector had saved about 3% a year since 2006 as a result of improved procurement.
But ‘weaknesses in programme management’ had contributed to delays in implementing some planned changes, the watchdog found. Its report, Improving public sector purchasing, concluded: ‘Better information on costs, savings and other benefits is needed to demonstrate the level of improvement and impact of the programme.’
Scottish public spending on goods and services is worth £8bn a year. The study assessed progress made since a 2006 review carried out by a leading public procurement expert, John McLelland.
He concluded that urgent action was needed across the public sector to improve the purchasing of goods and services. In response, the former Scottish Executive introduced a public procurement reform programme, of which a major feature was an increase in the use of collaborative contracts.
The public sector is estimated to have saved a total of £327m in the first two years of the programme, which has cost £61m so far to implement. The most successful sector was health, which introduced 150 new contracts and made savings of £54m in the two years to 2007/08.
But deputy auditor general Caroline Gardner said the current economic climate meant that the public sector needed more than ever to find cash savings without cutting services or quality.
She added: ‘The public sector is improving its purchasing and has the foundations in place for further progress. But progress until now has been variable and slower than expected.’
