Almost £3 billion in commercial benefits have been achieved for public sector organisations through use of Crown Commercial Service agreements, delivering what the Government says is record value for taxpayers.
CCS agreements provide public sector bodies with a choice of suppliers who offer the best value, leveraging the scale of public sector demand to secure competitive prices. By using these agreements, public sector customers can achieve commercial benefits such as reduced costs compared to market prices and better value in contract terms and conditions.
The newly published CCS annual report and accounts for 2021/22 shows £2.8 billion of commercial benefits were achieved across the public sector. CCS agreements secured £1.9 billion in benefits for central government, and a further £0.9 billion for the wider public sector.
This includes £4 million in savings for 14 NHS trusts on mobile and data services, such as voice calls, connectivity and applications. The Student Loan Company also saved £1.6 million by outsourcing its print and mail services through CCS’s Managed Print and Digital Solutions framework.
ACRO Criminal Records Office, a national police unit, was able to improve efficiency and accuracy by putting in place a machine translation solution through CCS’s Language Services framework. This enabled the organisation to translate vital conviction information quickly from EU member states and prevent criminal cases being thrown out of court, saving £6,000 in 3 months and helping to make our streets safer.
Minister for Brexit Opportunities and Government Efficiency, Jacob Rees-Mogg said, “The Crown Commercial Service is one of the highest-performing parts of the Government. It provides the best value for taxpayers day in, day out. At a time of high inflation and squeezed budgets, its work is more valuable than ever.
“By leveraging the scale of public sector demand when choosing suppliers, these agreements have secured billions in savings, which can be used to support vital services delivered across the public sector.”
Spending through CCS frameworks has doubled in five years, reaching £27.6 billion in 2021/22. This means CCS is on course to hit its target of £30 billion by 2024 and represents an increase of £4.9 billion on the 2020/21 total. CCS also assisted customers with contracts valued at over £5 billion annually by running procurements on their behalf.
The amount spent directly with small and medium-sized businesses (SMEs) increased by £687 million compared to the year before. In total, £2.2 billion was spent directly with SMEs, supporting growth and jobs across the UK.
Simon Tse, CEO of Crown Commercial Service, added, “Growing the economy is a top priority and supporting small businesses will do just that. The past year has seen record spending with SMEs through CCS agreements and suppliers have been paid promptly, aiding their growth and spreading economic prosperity across the country.”
CCS agreements have also supported public sector customers with key policy priorities, such as net zero commitments and supply chain auditing.
Thousands of customers used CCS’s dedicated net zero web pages over the last 12 months to identify agreements that help them meet sustainability goals.
CCS also published its first annual modern slavery statement in November. This set out steps being taken to identify, prevent and mitigate the risks of modern slavery in CCS operations and supply chains, including ensuring that suppliers are publishing an annually updated modern slavery statement.
Chair of the CCS Board, Tony van Kralingen said, “
Crown Commercial Service has once again driven significant value for taxpayers, while continuing to develop and enhance its reputation for excellence across central government and the wider public sector. I am delighted to be able to end my term as Chair of the CCS Board with such outstanding results. The Board and I are confident that the platform for continued success is well established.”
Details:
- £27.6 billion of public sector spend was channelled through CCS agreements, doubling spend over 5 years
- Customers who have used CCS agreements have achieved commercial benefits equivalent to £2.8 billion
- CCS’s employee engagement index, as measured by the Civil Service People Survey, remains high at 71% in 2021
- £2.2 billion was spent directly with SMEs through CCS’s commercial agreements in 2021/22 – an additional £687m compared to 2020/21
- The assisted procurement service helped deliver procurements for customers worth a total annual contract value of £5 billion
(Picture – CCS)
