Public money is still being lost through inefficient procurement and supplier management.
Independent analysis from the National Audit Office continues to identify significant opportunities for government and public bodies to improve procurement, strengthen commercial capability, manage technology suppliers more effectively and secure better value for taxpayers.
£393bn
spent buying goods and services
Around one third of public spending in 2022-23 went on the procurement of goods and services. The National Audit Office says procurement practice remains patchy and government still spends more than it should in some areas.
£14bn+
spent annually on digital procurement
The National Audit Office found that weaknesses in government’s approach to technology suppliers have contributed to delays and increased costs, with a need for stronger sourcing strategy and specialist digital commercial capability.
£125bn
spent each year on common goods and services
The National Audit Office identified scope for significantly better value through stronger competition, improved category management, better use of data and deeper understanding of supplier markets.
National Audit Office — Technology Suppliers, 2025
“Our recommendations are aimed at supporting government to take these steps to achieve better outcomes and prevent further waste of money.”
The NAO’s review highlights insufficient digital expertise within commercial teams, limited strategic sourcing capability and the need for government to become a more intelligent client of major technology suppliers. Read the NAO report →
Where Value Is Lost
Common commercial challenges
- Contracts renewed without sufficient market testing or competitive challenge.
- Technology requirements shaped around incumbent solutions rather than genuine business need.
- Limited visibility of supplier costs, consumption, licences and unused services.
- Weak contract performance measures and insufficient challenge when suppliers underperform.
- Price increases and cost creep accepted without robust benchmarking.
- Commercial teams lacking specialist technology knowledge or capacity at critical points in the procurement lifecycle.
How PEP Helps
Turning scrutiny into measurable value
Contract Cost Analysis & Renegotiation
Identify unnecessary cost, duplication and opportunities to improve commercial terms.
IT Procurement Strategy
Define the right requirements and sourcing approach before going to market.
Supplier Market Benchmarking
Test pricing and commercial terms against credible alternatives.
Supplier Performance Optimisation
Hold suppliers accountable to contracted service and performance commitments.
Spend Analytics & Savings Forecasting
Create visibility of expenditure and quantify opportunities for improvement.
Specialist Resource
Add experienced technology and commercial expertise when internal capacity is constrained.
Saving Taxpayer Money
How much value could be hidden in your technology contracts?
Public Efficiency Partners can review your current technology spend, contracts and supplier landscape to identify practical opportunities to reduce cost, strengthen commercial control and improve value for money.
Sources: National Audit Office, “Making public money work harder” (2024); “Efficiency in government procurement of common goods and services” (2024); and “Government’s approach to technology suppliers: addressing the challenges” (2025). Figures are reproduced from the cited NAO publications.
