What's Happening?
The UK government is experiencing a significant increase in the costs associated with its procurement platform, initially designed to save money. The platform, part of the Procurement Act 2023, was intended to streamline public sector procurement processes. Initially projected to cost £1.5 million annually, recent procurement notices reveal that the actual costs are expected to be much higher. Consultancy EY has been awarded a £17 million contract over two years to support the digital delivery of the Central Digital Platform (CDP), while Goaco Group received an £8 million contract for support and maintenance. These contracts suggest annual costs could reach £12 million, far exceeding initial estimates.
Why It's Important?
The increased costs of the procurement platform highlight potential inefficiencies in government spending and raise questions about fiscal responsibility. The platform's cost overruns could impact the UK government's ability to manage its £300 billion annual procurement spend effectively. This situation may lead to scrutiny from taxpayers and political figures concerned about government expenditure. Additionally, the increased spending on the platform contrasts with a slight decrease in public sector spending on consultants, emphasizing the need for careful budget management.
