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Local Authority Procurement Fraud and Corruption Risk Review

08 June 2020

Proposing MP
Simon Clarke Con
Middlesbrough South and East Cleveland
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
View on Parliament.uk -->

At a Glance

Issue Summary

The statement discusses the risks of fraud and corruption in local government procurement in England, providing a review to strengthen financial management and support communities.

Action Requested

Mr Simon Clarke publishes a report on reducing fraud and corruption risk in local authority procurement, highlighting actions such as standard definitions for fraud measurement, central reporting mechanisms, and capacity building within councils. He encourages councils to use various resources including the National Fraud Initiative and CIPFA Counter Fraud resources.

Key Facts

  • The review delivers on MHCLG’s commitment in the UK Anti-Corruption Strategy 2017-2022.
  • Local councils spend around £55 billion a year on goods, works, and services in England.
  • Estimates of losses to government expenditure from fraud and error range between 0.5% and 5%, equating to between £275 million and £2.75 billion per year for local procurement.
  • The report includes case studies and a risk matrix highlighting measures councils can use to strengthen resilience against fraud and corruption.
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