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Summary of main findings

The key findings showed that in 2003/04 London authorities:

  • Spent over £8bn with third party organisations.

  • Used around 200,000 different suppliers each year (with about 10-15% of these trading with two or more organisations).

  • On average spent around £250m and traded with 7,000 unique suppliers per annum.

  • On average 40% of suppliers generated a single invoice and over 30% of invoices were less than £100 in value, accounting for just over 1% of the expenditure.

The key message from the analysis confirms that the level of influenceable expenditure is high and that 80% goes on client facing services and public facilities.

The LCE Business Plan advocates a targeted approach to collaborative procurement which could help participating authorities to deliver savings of about £80m per year together with improved service delivery outcomes.