Government told to cut legal advice costs
By Jeremy FlemingGovernment expenditure on legal advice from external firms currently standing at 61 million should be cut by 10%, according to a National Audit Office (NAO) report published this week.The report on purchasing professional services is the result of a survey by the the NAO of 152 departments and agencies, detailed discussions with eight departments, and interviews with a range of service providers, including City law firm Clifford Chance.A Cabinet Office report in 1994 identified the need to increase efficiency in procuring services.
But the NAO reported that departments are still awarding fewer than 50% of contracts through full competitive tendering.Departments should get a grip of top-level contracting, identify opportunities to pool advice, use more professional procurement staff, and collaborate more closely with suppliers to achieve value for money, the report said.Of the 61 million spent by government last year on legal advice 11% of total expenditure on professional services slightly more than 10 million went on only five City firms: Berwin Leighton (2.2m), Nabarro Nathanson (2.1m), Eversheds (2.1m), Bird & Bird (2.1m), and Denton Wilde Sapte (1.8m).
Internal billing placed the Treasury Solicitors (4.9 million) and DSS Solicitors (3.3 million) above private practice.Government departments have more in-house lawyers than any other professionals.
There are 1,250 government lawyers, according to the report.A National Audit Office spokesman said that any proposed savings within legal services would be reflected evenly between in-house and external government lawyers.Roger Bickerstaff, head of private finance initiative (PFI) work at City firm Bird & Bird, said most government legal contracts are won through beauty parades.But he added: It is time that departments looked more closely at using their purchasing power to get best value: as well as being a lawyer I am a tax payer, who has no interest in money being wasted.David Davis MP, chairman of the public accounts committee which received the report, said there is huge scope to improve purchasing of services.
There is also clearly room for substantial improvement over the tending of contracts, he added.
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