Compulsory Competitive Tendering (Hansard, 22 February 1994)

§ Mr. Stewart

Since we announced in November 1992 our intention further to extend CCT and to set up an internal accounting framework for corporate services, we have been in discussion with local authority associations and the Accounts Commission. We are now in a position to consult more widely and are today issuing two separate consultation documents: one on construction and property services and the other on the statement of support service costs, which is the proposed name for the internal accounting framework.

The consultation document on construction and property services includes a definition of those services, indicates how much of this work authorities will be required to subject to CCT and gives details of modifications which we intend to make to the statutory framework for competitive tendering. We propose that local authorities be required to subject to competition 65 per cent., by value, of all construction and property work. In addition, the Government propose that authorities will be allowed to retain £450,000-worth of work in-house without going out to tender. This recognises that certain construction and property work should be retained in-house both to enable an authority to fulfil its democratic responsibilities and to act as an intelligent client for bought-in services.

The consultation document on the statement of support service costs, SSSC, includes worked examples to show how the SSSC will work in practice. Under those proposals, local authorities will be required to show how their support costs are allocated to front-line services. This will enable internal customers to have more information about the costs they are incurring and will ensure greater transparency of financial information.

We propose to extend CCT to new services in three tranches between October 1997 and April 1998. The proposed implementation date for the SSSC is 1 April 1997.

Copies of both consultation documents will be placed in the House Library.