Commissioning and competition in the public sector
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Public sector spending on goods and services accounts for approximately one third of all Exchequer expenditure and 15% of GDP. As a result, the way in which the public sector commissions and procures these goods and services can influence the structure and nature of competition in many markets, and the competitiveness of the UK economy.
This report draws on interviews with commissioners and suppliers across government and case studies on welfare, justice, education, health, social care and pension services.
We found that, for all the focus on market structures, successful commissioning often comes down to the behaviours of those involved.
Greater emphasis on the drivers of behaviours, such as incentives, skills, and organisational boundaries, is likely to help the public sector create more dynamic, open and competitive markets and better outcomes for the UK and its economy.
