Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 11th October 2016 Commons Chamber

[David Mowat]

The principal thing that we need to do with Lyme disease is to make progress on diagnosis, treatment and transmission through a definitive approach. When the results of the study that I mentioned are published, of course they will be available across all parts of the United Kingdom.

[Andrew Bridgen (North West Leicestershire) (Con)]

7. What steps his Department is taking to improve NHS procurement.

[The Minister of State, Department of Health (Mr Philip Dunne)]

I agree with my hon. Friend that this is an important area. In his report earlier this year, Lord Carter identified potential annual savings of £700 million from reducing the variation in procurement performance between providers. We have announced a first tranche of 12 standardised products for all NHS providers to use; this will boost procurement volumes and bring about economies of scale, securing lower prices. These initial products, including commodity items such as gloves and needles, cover £100 million of trust spending. We expect this to result in savings of up to 25%.

[Andrew Bridgen]

Innovative private sector suppliers have successfully partnered with the NHS since its inception, and it is quite right to say that for that relationship to be sustainable, those suppliers must make a profit. However, does the Minister agree that rogue companies that exploit the NHS’s lack of commercial expertise could be named and shamed, because they are making a lot of money at taxpayers’ expense?

[Mr Dunne]

We believe that the right approach to securing procurement savings is to take advantage of the immense amount of data available across the NHS. That is why we have set up the purchasing price index benchmarking tool. Data on more than £8 billion of expenditure, covering over 30 million separate procurement transactions, has been collated and will be analysed. We will use that information judiciously to save the taxpayer money. We think that that is the right way to start, rather than naming and shaming.