Reduction in Catering Spend - so what's cooking?

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Between financial years 2014-15 and 2015-16, Local government reduced their spending on catering by £26M, from £341.4M to £314.9M. This is a reduction of nearly 8% and a worthy saving made. Furthermore, the emerging data for 16/17 indicates that the year ended with a further 20% reduction in spend.

There are a few reasons this could be possible. However, the most likely is that Local Government expenditure on catering has moved from the council’s budget to schools directly. It is also conceivable that there has been an element of price deflation as councils look to save money.

The graph below shows how Local Government spending on catering has dropped since April 2014.

Graph showing drop in catering spend

Porge Research’s Public Sector Market Insight tool, Illuminator is also able to drill down to which public sector organisation is spending the most, and maybe most importantly which suppliers these organisations are spending money with.

The data is still building for 2016/17 but it’s likely the year will end with Taylor Shaw in the top spot. Taylor Shaw’s recent success is founded on significant growth in their Sheffield City Council contract, as shown in this chart below:

Growth in a supplier's public sector earnings

Illuminator is a useful tool that aggregates and categorises data from over 95 million public sector invoices across many different departments. Data like this helps procurement professionals and commissioners in the public sector to make decisions based on real, factual data.

If you would like to understand further how illuminator could save you money, manage your existing suppliers more efficiently or understand opportunities and risks with private sector suppliers, contact us today and we will be happy to give you a demonstration.

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