Procurement, capital and assets

Why this is a big win

More than 50 per cent of council spending is on goods and services bought from the private and community and voluntary sectors and billions of pounds are invested in land and property. Improving productivity in procurement and use of the public sector estate is an area in which major cost savings can be made. Children's and adult services are big areas of procurement spend – you can find out more about our approach to these services. Waste management is the next largest area of spend

The sector has already made significant strides to deliver 'Better for less' in these areas through, for example, the capital and asset pathfinders, Whole Place and Neighbourhood Community Budget pilots.

However, there is still much more that can be done to ensure that public sector spending and the public sector estate is as efficient as it can be and to mainstream excellent procurement practice.

Our approach

Procurement is not only about the purchase of goods, works and services at the most advantageous rates. It can also be an effective tool to sustain local businesses, develop the local economy and to pursue other policies. As such we need an approach to procurement that delivers the best prices and sustains local economies. Balancing these needs, while not impossible, will be a challenge.

We have recently launched a consultation on a local government procurement pledge. This pledge aims to make it easier for councils and local providers to do business by reducing processes and has the support of the sector.

We are also collaborating with the Federation of Small Businesses to better understand how councils work and do business with smaller companies.

Our Capital and Asset Pathfinders have shown that by adopting a strategic pan-public sector approach to customer demand, assets, and capital management at the local level money can be saved and services improved. Pathfinders have identified reductions in both operating space and running costs of up to 20 per cent. We are building on this success through a new programme for 2013/14, where the LGA are working with the Government Property Unit and 12 pilot local authorities on a joint ‘Rationalising the Public Estate' programme.

Our offer to councils

We will be helping councils to deliver better for less in the following areas:

Procurement

Developing a National Procurement Strategy. Provide the tools, guidance and briefings for members to direct procurement in their locality

Capital assets

Find out more details of the Local Government Association/Government Property Unit ‘Rationalising the Public Estate' pilot programme and the success of the Capital and Asset Pathfinders.