CBI accuses government of wasting £100m on procurement projects in NHS

The government is wasting millions of pounds on procurement projects rather than spending it on front-line healthcare, according to a CBI report published today.


In its Buying the best for the NHS report, the CBI claims that about £100m has being wasted due to delayed private finance initiatives (PFIs) and poor planning, states, and predicts that costs could rise to £122m.


The financial estimate is based on the costs of employing architects, project managers and other staff while the causes of delays are resolved.


John Cridland, CBI deputy director-general, said: “The cost to the NHS of poor procurement is already extremely high, and will only increase if action isn’t taken to remedy the situation.


“Ministers and officials must work with business to make sure that these problems are overcome.”


The CBI recommends improved training for procurement staff, promoting a more simplified bidding process and improving communications between hospital trusts and buyers.


“PFI can and does deliver,” said Cridland. “But the public sector needs to raise its game if the public is going to reap the full rewards.”


www.cbi.org.uk

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