(1 week ago)
Commons ChamberI spent the last few weeks meeting small and medium-sized enterprises, voluntary and community sector organisations, wider businesses and contracting authorities to discuss how we ensure that the approximately £300 billion that is spent each year on public sector procurement delivers for our communities. With this Government, procurement will deliver value for money, better public services and our national missions. The Procurement Act 2023 commences in February 2025, creating a simpler, more flexible procurement system under- pinned by a new mission-led national procurement policy statement to ensure that public procurement delivers on the Government’s missions.
Small businesses are a crucial part of the economy in Cumbernauld and Kirkintilloch. There are huge opportunities to help them further, and one way of doing that is to work across the public sector and with local authorities—in my case, North Lanarkshire and East Dunbartonshire councils, with contracts as big as the redevelopment of Cumbernauld town centre. Will the Minister work with local authorities and the Scottish Government to help more small businesses to bid successfully for contracts?
It is critical that we open up public procurement to small businesses. As I have said, £300 billion is a huge amount of public money, and the opportunity to ensure that small and medium-sized enterprises have access to that is also critical. As my hon. Friend said, SMEs are rooted in our communities, and provide local, often good-quality jobs.
We are taking action now to crack down on late payments that hit the cash flow of small businesses. The Chancellor announced recently that companies bidding for large Government contracts would be excluded from the procurement process if they did not pay their own suppliers within an average of 45 days.
The last Government promised to give more contracts through procurement to small businesses, but failed to do so for 14 years. Instead, they chose to use Government contracting to support their mates through covid. Will the Minister confirm that this Government will use the power of Government spending to contract directly with small businesses to support local companies and economies across the country, in stark contrast to the Conservative party’s enrichment of their mates?
As I have said, we will work hard to ensure that public contracts are supporting small businesses. I have spent a lot of time talking to them about how we can do that through the new public procurement policy and the measures in the policy statement. This week the Chancellor announced the appointment of a new covid corruption commissioner, who will be taking action to recover public money.
The residents of Falkirk want a Government who work day in, day out to deliver value for money for the taxpayer. Never has that been so true as now, given the broken public finances left by the Tories and 17 years of waste and inaction from the Scottish National party up the road. Does the Minister agree that the billions we spend on public procurement must deliver value for the taxpayer, and can she tell me what steps the Government are taking to ensure that that is the case?
When our public services are facing so much strain and desperately need rebuilding, it is critical that we cut waste and deliver value for money. Under the last Government the procurement system too often failed to drive that efficiency, as was shown by the shocking levels of fraud and waste during the pandemic. We will bring new transparency to public sector procurement, along with a relentless focus on fraud.
Gross spending on public procurement was £400 billion last year. What is the Government’s precise target for delivering greater savings from that budget?
That £400 billion is an enormous amount of money, and we need to ensure that it is going into growth, delivering for our communities and SMEs, and delivering on our missions. We are determined to act on procurement and reduce inefficiency, and we will provide further information about that in February. We cannot take lessons from the Conservative party about cutting waste inefficiencies, given that they oversaw gross mismanagement—Lord Agnew himself referred to “schoolboy errors”—in the delivery of procurement for this country.
The focus on public procurement will be welcomed by SMEs in the cyber-security sector in my constituency. CyNam has thousands of members, and when I talk to its SMEs they tell me that there is a real risk of our losing talent in the start-ups community to cities abroad such as Lisbon and Toronto. Can the Minister confirm that the steps being taken by the Government are good news for SMEs and Cynam?
As I have said, I firmly believe that we need to support SMEs, and I should be more than happy to speak to those in the hon. Member’s constituency and discuss the opportunities that are available. There is so much innovation and talent in this country. We need to ensure that public sector money is supporting our growth mission, and supporting good businesses in communities such as those in his constituency.
I thank the Minister for her answers. I have a very simple question: what steps have been taken to ensure that we have better procurement measures domestically in the United Kingdom and the devolved nations, particularly Northern Ireland, as opposed to relying on international partners to provide or deliver goods?
Through our procurement regime, we are determined to support small businesses, which are often locally rooted. We will continue to do that, while taking account of our trade obligations.
I am delighted to meet the Minister across the Dispatch Box. I have also been meeting many SMEs in the aftermath of the Budget. The impact of the Government’s decision to raise national insurance on many indirect providers of public services, such as GPs and hospices, appears not to have been fully factored into the Government’s workings at the time of the Budget. Now that the Government have had over a month to do the figures, what will be the impact of the national insurance job tax on the cost of public procurement, to the nearest, say, £1 billion?
I welcome the hon. Member to their place and look forward to meeting them across the Dispatch Box. Unfortunately, the last Government left this country in a terrible place, with public services in crisis. I was previously a council leader, and every single day I saw the absolute strain on our public services. People were waiting up to 12 hours for ambulances, which sometimes did not turn up. We have had to take action to invest in our public services in order to deliver growth. Through our procurement regime, we are already taking action to support SMEs, to ensure that money is not lost and to ensure that suppliers are paid quickly. I will set out more to the House in February—
Order. We have to get through the list. Give me a chance to get through it—we are only on question 6.
As a former council leader, I have seen at first hand the crisis in public services, with people falling between the cracks of systems that are under extreme strain. To reform that, we need to get out of Whitehall and support workers across the public sector to do things differently. From intervening early to support families, a White Paper overhauling employment support and an ambitious programme of reforms of the NHS, this Government are determined to reform public services to deliver for citizens.
Under the Conservative party, too much taxpayers’ money was wasted on projects and schemes that simply did not work. Does the Minister agree with me that in order to improve healthcare services, including mental health services, educational opportunities and social services, as well as transport provision and public safety in my constituency of Wolverhampton West, it is vital that the Government continue their tests and refine their policies to ensure they are effective, and continue to be effective?
I wholeheartedly agree with that. I heard too often from those on the frontline that they are fed up with policy being made in a closed room in Whitehall, and not with those who have real experience of the frontline. The Budget announced the introduction of a public sector reform and innovation fund to support us to test and learn with places around the UK. We are learning from the best evidence across the public sector. On Monday, I met representatives from all the What Work centres across Government, to understand the evidence of what works and how we can scale that to deliver for communities around the country.
We all remember that the Secretary of State for Health and Social Centre undertook that there would be no additional money going into the NHS without securing reform. That, like so many other broken promises, was dropped, and £22 billion or £25 billion—whatever it is—of funding was announced. Then afterwards he repeated the pledge that there would be no extra money without reform. Well, the cat is out of the bag. Will the Minister give the undertaking today, on behalf of the Government, that never again will we see vast increases in public expenditure without reform of public services, because we need an improvement in productivity, not just additional spending?
I am surprised to hear a Member on the Conservative Benches express concern about money that is desperately needed going into our NHS, when people are waiting for GP appointments and in ambulances. Under the Conservative party, police officers would spend hours sitting with people with mental health concerns. Is that productivity? The Secretary of State has set out an incredibly ambitious reform agenda for the NHS, moving resources into prevention and taking account of the amazing opportunities in digital technology to give people more control over their own health. Labour is the party that backs the NHS and fixes the mess left by the previous Government.
My hon. Friend is right to raise that point. Earlier this week, the Chancellor announced the appointment of Tom Hayhoe as the covid counter-fraud commissioner. The new commissioner will leave no stone unturned to investigate the unacceptable waste and fraud during the pandemic and to make sure that we learn lessons for the future.
Under the Conservative Government, too much taxpayers’ money was wasted on eye-watering consultancy contracts. We are taking steps to stop all non-essential Government consultancy spending this year and halve Government spending on consultancy in future years. [Interruption.] It might be hard for Conservative Members to hear about their record, but it is harder for us to live with it.
Public procurement is a vital lever for delivering our growth mission, and growth must be felt by people in every part of our country. What steps is the Minister taking to ensure that when taxpayers’ money is spent on private contracts, the key workers delivering the contract and local communities such as mine in Darlington maximise the benefits of that public money?
I thank my hon. Friend for her question and for the time she spent with me last week setting out the opportunities of procurement and the needs of her community in Darlington. We have heard from the whole House today how important it is to back small and medium- sized enterprises that have roots in communities, and we are determined that the new national policy procurement statement will do that.
I am delighted to give Christmas greetings to the Chancellor of the Duchy of Lancaster, and I am sure that most of us in the House feel a great deal of respect for him.
As the Prime Minister knew he was appointing a convicted fraudster to the Cabinet, was it not incumbent on him to tell the propriety and ethics team? If I can slip a second question in, Mr Speaker, will the right hon. Gentleman, who is committed to and leads in the Government on transparency and openness, all of which have been promised, undertake—notwithstanding the fact that he has not looked at these declarations—to find out and let the House know whether she declared it to the House?
(1 month ago)
Written CorrectionsThe Chancellor of the Exchequer recently took decisive action by appointing a new covid counter-fraud commissioner to help us recover public money and ensure that this never happens again.
[Official Report, 24 October 2024; Vol. 755, c. 388.]
Written correction submitted by the Parliamentary Secretary, Cabinet Office, the hon. Member for Queen's Park and Maida Vale (Georgia Gould):
The Chancellor of the Exchequer recently took decisive action by commencing the appointment of a new covid counter-fraud commissioner to help us recover public money and ensure that this never happens again.
(1 month, 2 weeks ago)
Commons ChamberThe Government take very seriously our role to ensure the resilience of Government suppliers. The Cabinet Office takes an active role in monitoring the Government’s strategic suppliers and putting in place contingency plans where there is risk of distress. More broadly, the Cabinet Office works alongside other Departments, from the Department for Business and Trade and the Insolvency Service to the Treasury. We are supported by UK Government Investments, which is the Government’s centre of excellence in corporate finance, with experience of corporate finance, restructuring and insolvency in the private sector. Any taxpayer support must be used wisely, balancing the need to ensure value for money and support jobs and the economy.
Following the collapse of five companies of the SK:N group, a large employer in Nuneaton, the health services that the companies offered have been impacted. Will the Minister please explain what steps the Government are taking to ensure that Departments have contingency plans to sustain the work of those companies to private healthcare patients?
I hope that my hon. Friend will appreciate that I cannot comment on the specifics of the case that she mentioned, but when any business collapses it causes huge distress to the customers and people who work there, including those in her constituency. In general, independent providers of NHS services must hold an NHS provider licence unless exempt. Licensed providers of services that are hard to replace are subject to financial and risk-based quality governance oversight to safeguard the continuity of services for patients. If my hon. Friend wishes to write to me with further details, I will ensure that the relevant Minister gets back to her.
Almost 48,000 companies in the south-west are now classed as in significant economic distress, according to the latest Begbies Traynor’s “Red Flag Alert” report. That is visible in market towns in Glastonbury and Somerton such as Wincanton and Street, which are losing high street stores. What steps is the Minister taking with her Cabinet colleagues to support businesses in the south-west?
This Government are determined to support growth in this country, as one of their driving missions. Work is going on across Government to support economic growth and investment and to ensure that high streets thrive again.
We will end the waste, inefficiency and cronyism that set in under the previous Government. Under this Government, procurement will deliver value for money, better public services and our national missions. As a first step, we are bringing forward a new national procurement policy statement under the Procurement Act 2023, which will deliver a mission-led procurement regime. It will drive value for money, economic growth and social value. We have also taken steps to cut down on wasteful consultancy spending, and have worked to set up a new covid counter-fraud commissioner. As set out in our plan to make work pay, we will also take further reforms set out in our manifesto.
I thank the Minister for mentioning cronyism in her answer. The biggest procurement scandal I have seen in my lifetime was under the last Conservative Government, when Ministers gave dodgy contracts to their mates and donors. They took our country’s reputation for honesty and integrity and trashed it. Residents in my constituency are not only angry but disgusted and ashamed. Will the Minister update the House on the steps the Government are taking to ensure that there will never be a repeat of this episode?
My hon. Friend can see just how keen I am to act on this issue. He is right that taxpayers are paying the price for the Conservative Government allowing waste and fraud to spiral out of control. The Chancellor of the Exchequer recently took decisive action by appointing a new covid counter-fraud commissioner to help us recover public money and ensure that this never happens again. I am working closely with the Public Sector Fraud Authority to push every avenue to detect fraud, from advanced artificial intelligence and analytics through to strengthening our enforcement powers.
Does the Minister agree that, when done right, public procurement can deliver positive change in our communities, especially given the poor state in which the previous Government left the public finances? What steps will she take to ensure that social value is properly embedded in our procurement frameworks, while delivering value for taxpayers and contributing to growth in our local economies?
I agree that procurement can be a powerful tool for delivering change in our society. Public sector procurement can help to drive our ambitions around growth, opening up opportunities for communities across the UK. The Government are currently consulting on a new national procurement policy statement that will set out our expectations around mission delivery and social value.
I thank the Minister for her very helpful answers. What steps have been taken to ensure that small and medium-sized enterprises in Northern Ireland, and further afield in the United Kingdom, have readily available access to the public procurement system, to ensure that they can secure the best goods for their business and thereby help our economy in Northern Ireland to grow?
Supporting SMEs through procurement is a huge priority for the Government. It is one of the things that we are consulting on as part of the new national procurement policy statement that I talked about. We are looking across our work in government to ensure that SMEs are part of the procurement process. This is a subject on which we will come back to the House.
As the Minister responsible for public service reform, I am clear that every single pound saved on unnecessary consultancy spend is a pound invested in the renewal of our public services and delivering our ambitious missions to change the country. We are taking tough action to cut down on wasteful consultancy spend. We are acting to stop all non-essential Government consultancy spending this year and to halve Government spending on consultancy in future years, with a target saving of £550 million in 2024-25 and £680 million in 2025-26.
As you can imagine, Mr Speaker, the people of Scotland are beside themselves with excitement—I would go so far as to say we are fair giddy—at the prospect of receiving a visit from the Prime Minister’s special envoy. As we prepare the red carpet and the massed pipe bands to welcome her, may I ask exactly what was the Cabinet Office’s role in the creation of the post, when we will see a job description published, and when the special envoy will finally take up the post officially?
At the Five Eyes summit last month, I reiterated this Government’s firm commitment to tackling fraud and learning from our closest intelligence allies. Fraud does not respect international boundaries. This is a top priority for this Government, and we are taking action to build a wide anti-fraud coalition on advanced artificial intelligence and analytics, and to take further action on enforcement.
You will be aware, Mr Speaker, that we are coming to the end of Whistleblowing Awareness Week. Civil servants and others are Ministers’ best friends. They are the people who can indicate where to find evidence of fraud, corruption and other criminal activity. May I press Ministers to create the office of the whistleblower, to give new legal protection, to normalise speaking out and to promote greater public awareness of whistleblowing rights, demonstrating the importance of whistleblowers in a fair, open and transparent society?
Can the Minister confirm that the procurement reforms will consider social value and local impact in contracts of Government and partners, such as the Crown Estate and Great British Energy, in important areas where there are World Trade Organisation non-competition exemptions, for example floating offshore wind contracts in the Celtic sea? They can provide a critical boost to the economies of places such as Cornwall.
I thank my hon. Friend for that question. I can absolutely confirm that we will do everything we can to ensure the new national policy procurement statement drives social value around communities in the UK, in line with our trade obligations.
I welcome yesterday’s publication of the child poverty taskforce framework. Is the Minister able to say more about the delivery of the strategy, other than that it will come out in spring?
(3 months ago)
Written StatementsThe Procurement Act 2023 aims to create a simpler and more transparent regime for public sector procurement that will deliver better value for money, and reduce costs for business and the public sector. This Government will use this legal framework to deliver greater value for money and improved social value, which will help raise standards, drive economic growth and open up public procurement to new entrants such as small businesses and social enterprises.
Under the Act, the previous Administration published a national procurement policy statement to which contracting authorities will have to have regard. But this statement does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value. I have therefore taken the decision to begin the vital work of producing a new national procurement policy statement that clearly sets out this Government’s priorities for public procurement in support of our missions.
It is crucial that the new regime in the Procurement Act goes live with a bold and ambitious statement that drives delivery of the Government’s missions, and therefore I am proposing a short delay to the commencement of the Act to February 2025 so this work can be completed. I am confident that the extra time to prepare will allow for a more seamless transition, ensuring a smoother and more effective implementation process for both contracting authorities and suppliers.
Letters to withdraw the previous Administration’s statement will be issued to both Houses shortly and the Government intend to make regulations to set a new date for the commencement of the Procurement Act 2023 of 24 February 2025.
I have also written to the relevant Ministers in the Welsh Government and the Northern Irish Executive seeking their agreement to the new date and assuring them of my commitment to working together in implementing the Procurement Act.
[HCWS90]
(4 months, 1 week ago)
Written StatementsI am today announcing the Government’s decision to accept the recommendations of the Senior Salaries Review Body (SSRB) on pay for the senior civil service (SCS) for 2024-25.
The Government received the SSRB’s 2024 report on 17 June 2024. This is being laid in Parliament today and published on gov.uk.
I am grateful to the interim chair and members for their report. The Government greatly value the independent expertise and insight of the SSRB and are accepting in full its recommendations on SCS headline pay for the 2024-25 pay round.
This year, the SSRB has recommended:
That all members of the senior civil service should receive a 5% consolidated increase to base pay from 1 April 2024; and
Setting the following pay ranges from 1 April 2024, based on increases to the minima of £1,000 for SCS1 to SCS3, and retaining the existing maxima:
SCS pay band 1: £76,000 to £117,800.
SCS pay band 2: £98,000 to £162,500.
SCS pay band 3: £128,000 to £208,100.
In reaching this decision, the Government have very carefully considered the advice and justifications provided by the independent SSRB. This year’s award will help us to continue to attract, retain and develop the very best senior talent for government and strikes fairness with an average 5% pay award for delegated grades below the SCS.
[HCWS33]
(4 months, 2 weeks ago)
Commons ChamberAs the Chancellor of the Duchy of Lancaster set out, the previous Government allowed waste and fraud to spiral out of control. Latest estimates show £10.5 billion of estimated fraud and error in the covid-19 schemes. That waste of taxpayers’ money is unacceptable and the new Government are taking action. This week the Chancellor announced that she will appoint a new covid counter-fraud commissioner. It will use every means possible to recoup public money.
I welcome the Minister and the entire ministerial team to their places. Public sector fraud underwent a massive spike during the pandemic, as personal relationships trumped proper due diligence. With billions of pounds still in the hands of fraudsters, it is imperative that the new Government work quickly to recover what was lost. I therefore also welcome the Chancellor of the Exchequer’s new covid fraud commissioner. What steps will the Government and her Department take to ensure that the money is recovered as quickly as possible, and indeed that something like this never happens again?
My hon. Friend is right that the previous Government oversaw VIP lanes that led to millions in waste, and we are still unpicking the impact of that lack of oversight. I have met the Public Sector Fraud Authority to set out my commitment to strengthening the counter-fraud approach across Government. As I have said, the counter-fraud commissioner has been introduced to support their work, and will use every means possible to recoup public money, reporting directly to the Chancellor.
In my corner of London, concerns have been expressed about a particular supplier being awarded contracts worth more than £25 million for useless PPE, after being put forward by a former Minister in the VIP lane. Could the Minister say more about how the Public Sector Fraud Authority and the Treasury will ensure that every penny that can be returned is returned to the public purse?
I am happy to meet my hon. Friend to hear more about the individual example from their constituency. As I have said, I have met the Public Sector Fraud Authority. We have set out that tackling fraud is an absolute priority for the Cabinet Office, and we will use every lever available to us to get back what is owed to the British people. The Public Sector Fraud Authority is already working closely with the Treasury on the role of the counter-fraud commissioner, and will continue to do so.
The Government believe that public procurement is a key lever for enabling the delivery of our missions. Effective procurement will allow the public sector to deliver better services for citizens. Our ambitious programme to make work pay will drive genuine value for money in procurement, and support organisations to create local jobs, skills and wealth. The new digital centre of Government will ensure procurement drives uptake of new digital technologies to improve our public services.
I thank the Minister for her answer. As she said, value for money is fundamental, but procurement can also be used strategically to ensure that growth opportunities and social benefits are felt across the country. What steps will the Government take to up the ambition in the implementation of the Procurement Act 2023, so we have the data, skills and digital tools to drive a more mission-driven and economically transformative commissioning and purchasing across the Government?
As my hon. Friend says, public procurement is a key lever for delivering improved standards in business and in achieving social value. It is one of the levers in making sure we are growing our economy and supporting good jobs, something I saw in local government where Labour councils made huge strides in delivering social value through procurement. The Government’s plan to make work pay sets out that ambitious programme to value organisations that create local jobs, skills and wealth, and treat their workers well and equally.
I join colleagues in welcoming the ministerial team to the Front Bench. The Government have made it clear that tackling waste in public procurement is a priority and that crony relationships will no longer define the awarding of contracts. Can the Minister reassure me and my constituents in Bolton North East that contracts will be awarded based on what is most cost-effective and on what is better for the public purse?
The Government have launched a fraud commissioner, whose role will be to look at what went wrong and make sure that we are learning those lessons. The VIP lanes and the issues that we saw previously cannot happen again. The new digital centre of Government, working closely with the Secretary of State for Science, Innovation and Technology and the Chief Secretary to the Treasury, will ensure that procurement and market engagement are used as effective tools to drive the uptake of new digital technologies and protect us against the kinds of thing that we saw previously.
As an NHS physiotherapist who worked during the covid-19 pandemic, I had the misfortune of witnessing at first hand how crony contracts resulted in wasted resources. Although those contracts may have been intended to reinforce the NHS during the unprecedented crisis, they did a disservice both to our NHS professionals and to patients. Will the Minister outline what tangible steps the Government are taking to avoid such a waste of resources in future and reassure the constituency of Dudley and the wider nation that the Government will take public spending seriously?
I thank my hon. Friend for her service during covid, and I thank all the health and care staff who risked their lives to protect us. Billions were spent on personal protective equipment that was unusable, overpriced or under-delivered. This Government are determined to learn those lessons and safeguard every pound of taxpayers’ money. I have met the Public Sector Fraud Authority and have set out our commitment to driving down fraud across Government. We are determined to learn the lessons from the work of the covid commissioner, who will report to Parliament.
I offer a warm welcome to the ministerial team. Constituents across Glastonbury and Somerton tell me that quality matters to them as much as value for money. Does the Minister agree that we must ensure that public procurement considers environmental and social factors as well as value for money?
Value for money is critical to this Government. We want to make sure that every pound of taxpayers’ money is spent wisely. We are inheriting a perilous economic situation, and we need to invest in public services, but we also need to deliver social value, which includes workforce standards and environmental standards. That is how we deliver good growth.
The Cabinet Office provides a framework to support Departments and employees, which includes signposts on how to raise a concern, channels enabling that to be done safely, and practical support for whistleblowers. The Cabinet Office is working to capture whistleblowers’ experience and ways in which to improve it, and, as was mentioned in the King’s Speech, we will be introducing a duty of candour Bill which will improve transparency and accountability.
Good whistleblowing is good for government. Last year the National Audit Office published a report saying that the Government must do more to address governmental failures, and, even more worrying, that 50% of civil servants feel that it is not safe to challenge the way in which things are being done, and feel that their concerns are not being listened to or, indeed, that they will face negative consequences if they speak out. Will the Government establish a new office of whistleblowers to create new legal rights, and also to promote greater public awareness of whistleblowers’ rights?
As you say, whistleblowing is critical. We have had a discussion today about fraud and about the problems that emerge when we do not have protections in place. We are absolutely committed to supporting whistleblowers, and we are looking into the statistics that you mentioned and what is causing those problems. We will continue to do that, because it is very high on our agenda.
Growth is a central mission of the Government. We want to use all the levers available to us, including procurement, to support good growth, jobs and local communities.