COMMUNITIES AND LOCAL
GOVERNMENT News Release (030) issued by COI News Distribution
Service. 19 February 2009
Councils can make
even greater savings through improved procurement processes and
give council taxpayers even greater value for money finds the
independent Roots Review published today.
The Review of Arrangements for Efficiencies from Smarter
Procurement in Local Government, carried out by Bill Roots, former
Westminster City Council Chief Executive, examines the procurement
of goods, services and capital purchases to identify ways to make
further efficiency savings.
The Roots Review finds that there has been improvement in
procurement practices in recent years, but that it is very
apparent there is scope to further improve value for money and
reduce the £42bn spent on external contracts by local government
in 2007.
The report challenges councils to 'spring clean' their
procurement systems and recommends substantial practical support
for councils, including the appointment of a new local government
procurement champion and greater support from Regional Improvement
and Efficiency Partnerships (RIEPS) by increasing the practical
procurement advice and 'best buy' information they hold.
Bill Roots said:
"Significant savings from smarter procurement is central to
the £4.9bn of efficiencies expected of local government.
Improvements have already been made in recent years but there is
still more than could be done.
"I believe a 'champion' within local government is
needed to lead and co-ordinate procurement efficiency, and
Regional Improvement and Efficiency Partnerships (RIEPs) are
ideally placed to become one-stop shops for expert advice and
'best buy' information.
"The recommendations I have set out will help drive forward
the work to make local government procurement practices even more
efficient and give council taxpayers greater value for money."
The key recommendations of the Roots review set out specific
steps that will help councils improve the efficiency of their
procurement processes and deliver greater value for money.
The report recommends that RIEPs:
* Act as a hub and catalogue for best deals information using the
available expertise within Government.
* Promote better working between councils and Small and Medium
Enterprises (SMEs).
* Provide online advice on model contracts; EU procurement rules;
market intelligence; and best practice.
* Make much more transparent to councils the impact of falling
below 'best practice standards' on procurement
* To identify, in collaboration with the LGA improvement board,
the size of savings lost by non-collaborative work or
non-open-market competition.
* Provide an annual report on efficiency achievements.
The report's other recommendations include:
* Appoint of a Procurement Champion to co-ordinate the sharing of
best practice and focus efforts on key spend areas including
construction, IT and energy procurement.
* Promote a 'horses for courses' approach that removes
the tendering barriers for smaller suppliers.
* Local Authorities to develop further links with VCS, SMEs and
social enterprises, which can bring real benefits.
* Local Authorities encouraged to carry out annual procurement
arrangement reviews
* Private sector to be encouraged to offer solutions to known
issues, not just await tendering processes before responding.
The Comprehensive Spending Review (CSR07) tasked English councils
to collectively make £4.9bn of cash saving efficiency gains with
the expectation that nearly 60per cent (£2.8bn) would come from
smarter procurement. The last assessment of local government
procurement took place in 2001, and given the credit crunch an
update was urgently needed.
Notes to Editors
1. Full details of the Roots Review of Arrangements for
Efficiencies from Smarter Procurement in Local Government can be
found at http://www.communities.gov.uk/publications/localgovernment/rootsreview
2. CSR07 arrangements for local government efficiency are set out
in a Value for Money Delivery Plan, negotiated with HM Treasury,
and supported by £0.5bn funding over the three years. There are
separate arrangements for the Fire and Rescue Services (including
a National Procurement Strategy for that sector) and the housing sector.
3. Under the National Improvement and Efficiency Strategy (NIES),
agreed with LGA, the Department has set out indicative funding of
£185m for the nine RIEPs and, through Revenue Support Grant
top-slice, the Department contributes to the funding of programmes
delivered by specified bodies in the LGA Group (including 4ps and
IDeA). The Department has also announced a £115m capital
Efficiency and Transformation Fund.
Published on behalf of the Roots Review by Communities and Local Government
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