Govt plan to mobilise public procurement announced

Date: Wednesday 13/01/10

Chief Secretary to the Treasury announces publication of action plan to mobilise public procurement in support of economic growth

Chief Secretary to the Treasury has today announced the publication of an action plan setting out how the Government will harness the £220 billion spent by the public sector on third party goods and services to support growth and economic recovery.

 

The plan, published by the Office of Government Commerce (OGC), reveals how procurement will be used to pursue economic growth through three specific agendas of supporting small and medium-sized enterprises; encouraging apprenticeships, training and youth employment; and reducing carbon emissions. 95% of contracts are won by UK businesses, and ensuring this money helps support the UK’s small businesses, our drive to improve skills and to tackle climate change will be vital to our economic future.


The plan also includes the announcement of a voluntary charter to be established between Government and key suppliers to further assist in delivering on these priorities.

 

Progress will be supported and monitored by the OGC through the introduction of performance metrics, against which all departments will be expected to report regularly, starting in spring 2010.

 

Chief Secretary to the Treasury, Liam Byrne MP said "Government spends £220 billion on goods and services, 95 per cent of which goes to British firms.

 

“As well as maximising value for money, the OGC’s plans will make sure that Government procurement spending supports our small and medium-sized enterprises, encourages apprenticeships and better skills and reduces carbon emissions.

 

“Government spending power will help to lock in the recovery by providing support and investment to the businesses up and down the country.”

 

The plan, which the Government announced in the 2009 Pre-Budget Report, sets out future milestones including the creation of practical help for procurers to assess which priorities should apply, additional guidance and training programmes for procurement practitioners, and consultation with wider public sector organisations on how to apply the action plan more widely.

 

The Policy Through Procurement Action Plan can be downloaded via the OGC’s website.