Efficient catering could save £220m, says the NAO

30 Mar 06
Annual savings of more than £220m could be generated if public bodies improved their food procurement, government auditors said this week.

31 March 2006

Annual savings of more than £220m could be generated if public bodies improved their food procurement, government auditors said this week.

The National Audit Office examined the full range of public sector catering, with a focus on schools, hospitals and armed forces' bases, and noted that although progress had been made in recent years more could be done to generate efficiencies.

The March 30 report estimates that £80m could be saved by greater use of joint purchasing. The NAO found that more than half of public sector organisations did not engage in any joint purchasing, despite the fact that 44% used at least two of the same major suppliers.

Further savings could be achieved if organisations bargained harder for lower prices or better-quality ingredients, auditors said.

Organisations should also do more to negotiate for an increased share of savings enjoyed by many contract caterers.

The report was critical of a lack of catering skills in the sector, with a shortage of trained chefs in some areas, reducing the scope to prepare meals with fresh ingredients.

NAO head Sir John Bourn said: 'The principal lesson is that gains in efficiency need not be at the expense of, indeed can go along with, improvements to the quality of food and sustainability.'

Public Accounts Committee chair Edward Leigh added: 'The public sector has to prove that it has the appetite to meet this challenge. The food from institutions need not be institutionalised food.'

The NAO has produced a guide to help public sector organisations improve the efficiency and quality of their catering services.

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