Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Helen Hayes Excerpts
Thursday 1st October 2020

(3 years, 6 months ago)

Commons Chamber
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Julia Lopez Portrait Julia Lopez
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I am afraid that the Competition and Markets Authority is not within my remit, but I am happy to look into any concerns, because contracts and procurement performance are within my remit, and I want to ensure that we receive value for money for the taxpayer in everything we do.

Helen Hayes Portrait Helen Hayes (Dulwich and West Norwood) (Lab)
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I understand that the Government’s contract with Sitel for test and trace is renewed on an eight-week basis, with a two-week notice period. The next deadline for renewal is this Sunday, 4 October. Will the Minister publish all the renewal dates for Sitel and Serco’s contracts, and will she explain what justification the Government could possibly have for continuing with the failed privatised, centralised model of test and trace, by contrast to the effectiveness of local councils and public health teams, who are denied the full funding that they require?

Julia Lopez Portrait Julia Lopez
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As I have said, without the private sector, we would have struggled to deliver the testing capacity that we now have. Serco and Sitel are approved suppliers on the Crown Commercial Service’s contact centre framework, and they gain their places through fair and open competition via Official Journal of the European Union procurement. Value for money and capability were part of the assessment criteria. But if there are other suppliers that would bid well for the contracts, we are happy to look into that.

Helen Hayes Portrait Helen Hayes
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Government spending on consultants has risen sharply in recent years, up by around £1 billion since 2016, with contracts worth at least £56 million awarded without competitive tender during the covid crisis. Does the Minister agree with her colleague Lord Agnew that the Government are reliant on consultants who are providing poor value for money because of their vastly inflated cost when carrying out services that could be conducted more efficiently in-house? If so, can she tell the House when the review into current controls and spending limits will begin, and when it will report?

Julia Lopez Portrait Julia Lopez
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Consultants play an important role in what the Government try to achieve on particular projects, but the hon. Lady is right: we have concerns about the cost of those consultants and whether we are too reliant on them, and we are actively reviewing that. I am working with my colleague Minister Agnew on these matters.