Problem: 71,000 civil servants have permission to spend £1,000 a month on everything from computers to stationery and travel without authorisation. One department paid £73 for a box of paper while another paid just £4.
Solution: All transactions must have prior authorisation and most purchasing should be done centrally through one contract at the cheapest price, imposing the Government's terms on suppliers.
Problem: Public sector property (excluding the Ministry of Defence and the NHS) occupies 2 billion square feet and costs the taxpayer £12.4bn a year. One government agency took out a 15-year lease on a building that was 30 per cent larger than it needed despite alternative premises being available nearby for £15m less.
Solution: Government property should be managed centrally. Property experts should be brought in to reduce space occupied and rent paid.
Problem: Budgets are only reviewed at the highest level and rarely against performance targets. Departments are not incentivised to spend less than the cash budgeted.
Solution: A team of three or four people, with financial and commercial expertise, should review departmental spending with an emphasis on efficiency and accountability. A quarterly review process, including spend to date and forecast, should be submitted to the centre, detailing spend against budget.
Dave Brown, the Independent
