Ministers have announced the creation of a new procurement service to amalgamate Whitehall's annual £45bn commercial spend on goods and services into a single body.

Due to go live this autumn, the Crown Commercial Service will bring together the existing Government Procurement Service and other efficiency bodies to centrally purchase common goods and services, such as professional services and energy, for central government.

The new body will work closely with the wider public sector to aggregate spend and share the benefits of its combined commercial clout.  It will also give advice to departments on complex procurements to reduce spend on outside consultants.

‘This government's commercial reforms have already saved the taxpayer £3.8 billion,' said Francis Maude, Minister for the Cabinet Office.

‘The new Crown Commercial Service will ensure a step change in our commercial capability, giving government a much tighter grip on all aspects of its commercial performance, from market engagement through to contract management.'