On BBC Radio 4's Today programme this morning, local government minister Bob Neill stated that private sector audit firms would offer better value for money than the UK's Audit Commission. Mr Neill's logic was that competitive offers by private sector participants force winners to offer value for money and failure to manage costs thereafter is a private sector's problem.
The minister is correct provided that government departments are capable managers of suppliers once contracts go live. Spend data released to date would suggest that the public sector is no better at managing its suppliers than it is at managing its own agencies.
Observations on UK public spend and procurement
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