Last week's CLG Committee report into local government procurement wasn't without critical observations.

But the MPs' findings not only concluded how more effective procurement and collaborations could release up to a (rather ambitious) £1.8bn in savings but also pointed the way for more effective council procurement to become a foundation of better, outcomes-based local services.

Greater weight might possibly have been given to the impacts of rapidly-changing financial, resource and capacity constraints on local authorities. But the impact of austerity is increasingly understood.

What stood out for me was the report's identification of three fundamental ways in which procurement can realise its future potential in transforming the way that local services are designed and delivered.

First, ESPO agrees with the committee's recommendation of up-skilling in the profession. Whether it's the Commissioning Academy or the LGA's further dissemination of best practice, it's essential that there is greater acquisition and application of skills - in councils and their partners - in delivering new services.

Our experience is that pan-sector procurement specialists are already playing a hands-on role with good advice and staff training. They are helping councils buy better and build the teams to deliver even more in the future.

Second, we welcome the committee's demand for collaboration to become the default considered option in local government buying. 

Collaborative approaches are already aggregating demand and driving savings. Aggregation isn't just about demand, it's also about aggregation in know-how and experience. Supported by centres of excellence at the centre or locally, multi-partner collaborations will balance the overriding drive for efficiencies with the improvement of local outcomes.  

Councils, from big metropolitans to districts, need different types of procurement models and hubs. These models will aggregate demand, improve purchasing efficiency and help councils develop appropriate locally-focused supply chains where private sector businesses help the local economy to thrive.

Another – under-realised and often misunderstood – opportunity lies in frameworks. 

Local authorities can drive large-scale and better purchasing in priority areas such as IT hardware, professional services, energy and food, by making wider and smarter use of EU frameworks.

These contracts simplify the job of EU compliance by councils. Agreed frameworks ensure a level playing field that encourages local businesses to open up public sector markets. ESPO has already have achieved 55% supply from private small firm partners and wants more.  

The third major point in the report was arguably its most far-reaching.

With the public sector procurement responsible for £45bn, it can no longer be regarded as a niche activity.