A parliamentary committee has warned that government departments and councils need to find more innovative ways of procurement.

A report from the trade and industry select committee warned last week the public sector was too ‘timid' in its approach to procurement, which meant taxpayers were not getting value for money.

‘The bureaucracy around tendering runs the risk of reducing competition for contracts in future,' warned committee chairman Peter Duff MP.

‘In addition, often purchasers see "cheapest cost" as being the same as "best value for money", and they fail to use discretion already given to them to promote innovation or to achieve environmental or social aims through public  procurement.'

The committee has recommended that the Office of Government Commerce (OGC) review its procurement guidance.

It also called for better trained and higher quality procurement officials, supported by floating teams of experts in particular fields.

The committee also noted that some public bodies, including theTreasury, had a poor record for paying bills on time.
‘We need greater professionalism among those engaged in buying goods and services for the public
sector,' added Mr Duff.