Government IT spend "crazy" said Green in efficiency report

Spending ranged from £350 to £2,000 per laptop

Spending ranged from £350 to £2,000

Prime minister David Cameron has accused the last Labour government of making "crazy decisions about computers" after receiving a "chilling" wide-ranging report on efficiency from Top Shop chief Sir Philip Green.

The report revealed spending ranging between £350 and £2,000 on laptops, with a total spend of £61m a year spread across 13 different service suppliers with no standard specification across departments.

Green demanded direct purchasing from a single manufacturer and asked: "If you were to buy a laptop for yourself, would you pay £2,000 when the same item can be bought on the internet for £800?"

His report revealed prices paid for printer cartridges ranging between £86 and £398 and one mobile phone contractor has 68 separate contracts with different departments and arms-length bodies worth £21m, all negotiated and charged separately.

The report gave the example of one long-term IT contract with six years to run worth more than £100m a year with work charged at £1,000 per person per day, described as "well in excess of market rates".

Another example given is that of a supplier with several contacts of three years or more worth more than £300m per annum combined, with contract terms differing between departments resulting in costs that are "significantly greater than they should be".

The report called for an audit of all contracts where the remaining value is more than £100m (estimated to total £16bn) by a central, experienced negotiating team.

The audit should look at current demand for services, the difference between actual cost and book price, financing arrangements, subcontracting, flexibility and the ability to break a contract.

Key findings include the complaint that expensive IT services are contracted for too long with no flexibility and that the government acts as a series of independent departments instead of a single organisation with a centralised procurement system.

"The prize for the taxpayer is too big and significant not to change," said Green.

Cameron told a 10 Downing Street press conference that some of the information in the report particularly around the different costs of computers or even cups of coffee across government departments make for "chilling reading ".

"Under the last government sluice gates were opened," said Cameron. "The money was spent and there were not enough questions asked about how we can purchase better, save money and find efficiencies."

Cabinet Office Minister Francis Maud said: "The findings clearly demonstrate the scale of inefficiency and waste present in the system today.

"We welcome the sense of urgency that Sir Philip has brought to this work and we are looking at how we can best take forward key recommendations," He said.