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Government to make cross-Whitehall spending controls permanent
The government is enhancing its procurement standards by implementing its cross-Whitehall spending controls as a permanent fixture.
Introduced in 2010 as a temporary measure, the spending controls cover areas such as advertising and marketing spend, ICT, recruitment, property and consultancy, with savings of £3.75 billion achieved in 2010/11 as a result.
This figure is expected to increase to more than £5 billion in 2011/12, thanks to a system that not only reduces costs, but also helps ensure there is a competitive mix of suppliers across government departments.
The announcement coincides with a meeting between minister for the Cabinet Office Francis Maude and 20 of the government's key suppliers, during which the firms were briefed on the next phase of its supply chain reforms.
He said: "I want Whitehall procurement to become as sharp as the best businesses'. I will tell companies that ... to work with us, you will have to offer the best value for money."
This comes after the Cabinet Office renegotiated two of its major IT contracts earlier this week in order to make better use of the government's bulk procurement capabilities.
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