London Councils and the London Procurement Strategy Board response to the CLG Committee inquiry into the effectiveness of local government sector procurement and the potential for further development.
London local government recognises the important role of procurement in supporting the continued delivery of high quality, value-for-money services to local residents, particularly in the current public finance environment.
London local authorities spend approximately £9 billion each year on a diverse range of goods and services. This represents approximately 15 per cent of all local government third party expenditure and analysis suggests that on average, 80 per cent of procurement spend in London takes place with 6 per cent of suppliers.
These figures are significant and highlight not only the important role procurement can play in supporting the government’s deficit reduction programme, but also in supporting local, regional and national economic growth.
London local government has long recognised its significant purchasing power and the need for a joined up and supportive approach to procurement.
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