Green review attacks Whitehall for failure to use buying power
A review led by Sir Philip Green has slammed the government for consistently failing to make the most of its scale, buying power and credit rating.
The Topshop boss was asked to look at the procurement of goods and services such as IT, travel, print and office supplies, and the management of the government’s property portfolio.
The report will be published in full later today, but its key findings include the poor quality of much of the data relating to where and how Whitehall spends its money.
It will also criticise the lack of a centralised approach to buying goods and services, which has apparently allowed government departments to pay hugely different prices for the same items.
Sir Philip Green said: “There is no reason why government should not be as efficient as any good business. Any large organisation would want to use its credit rating and scale to buy efficiently. The conclusion of this review is clear – credit rating and scale in virtually every department has not been used to make government spending efficient.”
Cabinet Office Minister Francis Maude claimed Sir Philip’s review had uncovered a “staggering” amount of waste.
“His review shows that for too long there has been no coherent strategy to make government operate more efficiently,” Maude said. “We know that government is very different to business. But that does not mean that it should not act in a more business-like manner.
He added: “Every pound that we can take out of the cost of government is a pound we can protect on the front line. Our over-riding aim is to protect the quality of front line services and to protect the jobs of dedicated public sector workers.”
Sir Philip's review comes on the same day as a report in the Daily Telegraph suggesting that the Prime Minister has written to all ministers calling for an inventory of their property, including lengths and occupants.
The newspaper said portfolios of property could eventually be sold or floated on the stock market.
A report in the Financial Times has meanwhile revealed that government departments negotiating or renewing office leases will have to agree a 25% discount on the market rate.
John McCready, head of property at the Shareholder Executive and a former Ernst & Young partner, is said to be drawing up plans to shake up the government's property estate. Property sources told the FT that a new vehicle could be set up to control all government property in London.
