What's Happening?
The Institute for Government has released a report urging the UK government to innovate its procurement processes to better align with policy goals set by Prime Minister Keir Starmer. The report highlights the need for a cultural shift within the civil service to overcome risk aversion and embrace innovative practices. It suggests that the government should update its Sourcing Playbook and engage in more in-depth market engagement to encourage innovation. The report also identifies gaps in commercial capability within the government, recommending the development of a long-term strategy to increase the number of senior commercial specialists.
Why It's Important?
The call for procurement innovation is significant as it aims to enhance the effectiveness of government spending, which amounts to £400 billion annually. By aligning procurement with policy goals, the government can potentially achieve better outcomes and value for taxpayers. The emphasis on innovation could lead to more efficient public services and support the government's broader missions. However, the success of these recommendations depends on overcoming existing cultural barriers within the civil service and ensuring strong ministerial leadership.
What's Next?
The report suggests that the government should publicly commit to procurement innovation and develop clear theories of change for achieving policy goals. This involves identifying key challenges and desired outcomes for each mission. The government is also encouraged to review existing contracts to ensure alignment with mission objectives. These steps could lead to a more strategic approach to procurement, fostering innovation and improving public sector performance.