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Unlocking Value for Money in Central Government Amidst
the 2024 Spending Review

With HM Treasury formally launching the 2024 Spending Review process, central government departments face the dual challenge of delivering essential services while identifying efficiencies to meet stringent new budget constraints. The recent directive from the chief secretary to the Treasury, has now written to cabinet ministers ordering them to find reforms and deploy technology that can save cash, underscores the new Chancellor’s emphasis on the need for departments to achieve a 2% reduction in back-office costs.

In a related article, Rachel Reeves states that Labour aims to cut consultancy spending in half by introducing tough new rules: “If a government department wants to bring in consultants, they must demonstrate the value-for-money case. And if they cannot, then that request will be denied.”

While cost savings are crucial, public sector organisations must adopt strategies that align with their broader procurement objectives and deliver long-term positive results. In the face of rising costs, continuous resource constraints, and evolving procurement regulations, Constellia is here to support government departments in navigating these complexities.

Our data shows that in 2023, we helped clients save an average of 21% on budget. But our mission extends beyond cost savings—it’s about delivering true value for money (VFM) through innovative, flexible, and compliant procurement solutions with long-lasting impact.

Here’s how we help central government clients achieve Value for Money (VFM) beyond just cost savings:

  • Speed and Compliance: A Seamless Procurement Process Calling off Constellia via one of the Neutral Vendor Frameworks ensures your procurement is fully compliant with Public Contract Regulations 2015, providing a safe and reliable solution that is not affected by the Procurement Act 2023. By choosing Constellia, you’re opting for a procurement solution that meets compliance standards and delivers the flexibility and transparency that the new Act aims to achieve. Additionally, we can rapidly execute a direct award on your behalf in just five days or a mini competition in as little as ten.
  • Outcome-Focused Procurement: Pay for Output, Not Hours Our Statement of Work (SoW) procurement model is designed to ensure you pay for results, not just hours worked. This approach emphasises delivering measurable outcomes, ensuring that every pound spent directly contributes to your strategic goals. With our robust SoW processes, 79% of project milestones in 2023 were delivered on time and within budget, demonstrating the effectiveness of paying for output rather than time.
  • Enhanced Control With Source-to-Pay Visibility: Constellia’s Source-to-Pay platform offers complete control and visibility over every procurement process. By centralising all procurement activities through one user-friendly platform, departments can continuously monitor and measure every aspect of their spending. Our platform’s real-time data and analytics enable informed decision-making, ensuring that procurement activities align with current needs and long-term objectives.
  • Driving Social Value Through Strategic Procurement: At Constellia, we integrate Social Value (SV) into every procurement strategy, supporting local supply chains and Voluntary, Community, and Social Enterprises (VCSEs). Our commitment to SV drives cost savings and creates long-term benefits for the communities we serve. In 2023, 83% of our projects were delivered by Micro, Small, and Medium-Sized Enterprises (MSMEs), which helped clients meet their SME targets while driving significant Social Value impact.
  • Collaborative Communities for Shared Success: Beyond procurement, our clients benefit from access to our Collaborative Communities—category and industry-specific councils where members can network, learn, and share best practices. These councils offer exclusive opportunities to share similar jobs, maximise spend, and access the latest benchmarking and business intelligence. By pooling resources and insights, departments can stretch their budgets further and achieve a more significant impact.

Key Takeaways: Achieving True Value for Money with Constellia

  1. Navigating Budget Constraints: Constellia helps departments manage stringent budget cuts effectively, achieving an average of 21% savings on budgets while ensuring compliance and value.
  2. Rapid and Compliant Procurement: Our Neutral Vendor Frameworks facilitate fast procurement, with direct awards completed in five days and mini competitions in ten, all while adhering to compliance standards and adapting to the latest regulations.
  3. Outcome-Driven Procurement: With our SoW model, you pay for the outcomes you need, ensuring transparency, efficiency, and value.
  4. Comprehensive Control: Our Source-to-Pay platform offers complete visibility and data-driven insights, enhancing procurement decision-making and aligning with short-term and long-term goals.
  5. Social Value Commitment: Embed Social Value into procurement strategies to achieve long-term savings and positive community impact, supporting local supply chains and VCSEs.
  6. Collaborative Communities: Leverage our category-specific councils to share best practices, maximise spend, and access exclusive opportunities for networking and growth.
  7. Competitive Fees: Our supplier-absorbed service fees offer the most competitive and best value in the market, typically saving at least 3% on total costs compared to similar providers.

To explore how Constellia has helped government departments save costs and increase efficiency, discover our case studies by accessing the link below.

ACCESS CASE STUDIES

At Constellia, we recognise the government’s commitment to achieving a 2% reduction in costs, an essential step towards greater efficiency in the public sector.

As a strategic procurement partner to public sector organisations, our commitment extends beyond just meeting these targets. We create broader value and maximum impact by integrating innovation, flexibility, and efficient procurement solutions. By embedding Social Value into procurement processes and supporting local SMEs, we ensure that the benefits extend across the sector, fostering long-term, sustainable outcomes. In collaboration with public sector organisations, we are committed to not only achieving immediate goals but also driving lasting, positive impact.

Get in touch today to learn how we can support your team.

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