You are right to raise the importance of effective procurement across local government. With more than a third of all UK Government spending on goods and services being spent by local government, it is crucial that the system is transparent and that taxpayers’ interests are protected.
The Government’s public procurement policy puts value for money front and centre. In addition to public procurement requirements, there is a Local Government Transparency Code for local authority buyers. As laid out in the code, local authorities must publish details of each individual item of expenditure that exceeds £500. The Local Government Association has published a National Procurement Strategy and an accompanying toolkit to support local authorities to deliver economic and social value for their communities.
In 2020, the Government conducted a review into local government procurement. This highlighted the importance of continued vigilance across the whole procurement lifecycle. A key finding was the importance of organisational culture in preventing, detecting and responding to fraud and corruption related to procurement.
The Procurement Act is creating a simpler and more transparent procurement system, taking advantage of the benefits of Brexit. The legislation will reduce bureaucracy and simplify public procurement through the introduction of a single digital platform. The Act will help tackle unacceptable behaviour and poor performance through new exclusion rules and by giving buyers the tools they need to properly take account of a bidder’s past performance.
I believe that transparency is the foundation of local accountability. I have been assured that the Government will continue to work with local government to encourage transparency and value for money.