Core business skills are needed at the heart of Whitehall if the government is to improve its track record on procurement from UK businesses, the CBI says.

Research involving the organisation’s members revealed concern among businesses about how procurement executives dish out contracts and how they manage them.

Of the 150 businesses responding to the research, 67 per cent said the government had failed to standardise the procurement process, while the same number said they believe most contracts go to the lowest-priced bidder.

The CBI says £20 billion in government spending goes to just 39 suppliers and is calling for the supplier base to be diversified.

“Failing to standardise procurement processes across the public sector leads to higher costs for businesses, making it more difficult for smaller firms to compete,” it said.

Jim Bligh, CBI’s head of public services added: “We know public procurement reform takes time, but progress has been painfully slow.”