Commons Sense

House of Commons · Ministers' Questions

Public Procurement: Value for Money

Thursday 11 May 2023 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • Government policy awards contracts based on value-for-money terms as outlined in "Managing Public Money".
  • The Procurement Bill aims to enhance value for money by increasing flexibility and reducing prescriptive rules.
  • No funds from the automotive transformation fund were paid out to Britishvolt due to unmet conditions.

Topics (select to filter)

Questions & Answers

Q1 Ian Levy
Business Compliance
Context

The question addresses ensuring value for money in public procurement.

Question

What steps he is taking with Cabinet colleagues to ensure value for money in public procurement spending. He wants to know the specific measures being taken to optimise cost and quality in government projects.

Answer from Alex Burghart

It is Government policy to award contracts on value-for-money terms, as set out in “Managing Public Money”. The Procurement Bill will drive value for money by providing greater flexibility and removing overly prescriptive rules. We always look for the optimum combination of cost and quality over the lifetime of any project.

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Q2 Ian Levy
Taxation Employment Business & Trade
Context

The MP supports a project to build a gigafactory on the Blyth estuary but questions the decision-making process regarding the release of public funds.

Question

I am fiercely supportive of the project to build a gigafactory on the Blyth estuary, which would provide much-needed jobs for my constituents. However, I also believe in due diligence when spending public money. Would my hon. Friend agree with me that it was a wise decision for the Government to withhold the release of a £100 million grant for this project? The Labour party wanted to release this large sum of public money without ensuring the financial stability of the business, once again spending other people's money.

Answer from Alex Burghart

My hon. Friend is absolutely right: taxpayer money must always be used responsibly. The conditions of the grant were not met and therefore no funds from the automotive transformation fund were paid out. We are pleased that Britishvolt has successfully been acquired and we will continue to work closely with the local authority.

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