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Maude: Public sector ‘easy margins’ over

Cabinet office minister Francis Maude has told the government’s largest services providers that the days of ‘easy margins’ from public sector work are over

As part of a bid to cut costs and give a quarter of state contracts to small businesses, the minister has launched negotiations with large suppliers on how to shakeup procurement processes.

He said: ‘We will open up the market to smaller suppliers and mutuals and we will expect you to partner with them as equals, not as sub-ordinates.

‘Government will no longer offer the easy margins of the past.’

Small businesses, including architects, are encouraged to feedback to government on suggestions for procurement reform.

Maude said: ‘You will all have experienced procurements that seemed to go on forever, cost millions of pounds and took countless hours of your employees’ time and energy.

‘I know how frustrating this can be and I can promise you here today that we will do things differently.’

The government hopes the outcome to the negotiaions could trim £800 million off the budget within this year alone.


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