Commissioning and Procurement

Oral Answers to Questions — Cabinet Office – in the House of Commons at 11:30 am on 20 October 2010.

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Photo of Stephen Metcalfe Stephen Metcalfe Conservative, South Basildon and East Thurrock 11:30, 20 October 2010

What recent progress has been made in delivering his Department's policies on Government commissioning and procurement.

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

Commissioning is currently too prescriptive; tender documents can be immensely lengthy, specifying every detail of every step in every process. That stifles innovation, excludes new entrants to the market and adds wholly unnecessary cost. We intend that commissioning should be outcome-based, leaving much more scope for innovative providers from the social enterprise, voluntary, charitable and small business sectors to bid. Whenever possible, commissioning should be based on a payment-by-results model.

On procurement, I refer my hon. Friend to my reply to Question 2. [Interruption.]

Photo of Stephen Metcalfe Stephen Metcalfe Conservative, South Basildon and East Thurrock

I thank my right hon. Friend the Minister for his answer. Following his earlier comments, I seek assurance that small and medium-sized enterprises in my constituency can access Government contracts. Can he give me any examples of practical help now or in future that would make that easier to achieve?

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

We certainly hope that that will be the case. It is our aspiration that 25% of Government contracts should end up in the small and medium-sized sector. We are committed to publishing online, in an easily accessible form, all Government tender documents. That will make it much easier for small businesses, which can otherwise be put off the process, to take part.

Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office)

In terms of commissioning and procurement, the public sector procures £13 billion-worth of services from the charitable sector. On Monday, a think-tank suggested that the Government's statement today will wipe out about £5 billion of that procurement-the whole of the increase that was achieved in the past 10 years. What are the Minister's intentions for funding the voluntary sector? How does he reconcile cuts in that sector with the Prime Minister's aspiration for the big society?

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

We are very aware of concerns in the sector. The Chancellor is very aware of them, and will have something to say about the matter a little later. However, there must be reductions in public spending for the simple reason that the former Chief Secretary set out with such uncharacteristic lucidity in his valedictory note.