What happens when an organisation cannot demonstrate that expenditure has been properly contracted? Many organisations assume that because suppliers are delivering essential services and invoices are being paid, their contractual arrangements must be satisfactory. Havant Borough Council’s experience demonstrates why this assumption is dangerous. In September 2026, the council revealed that approximately £16.6 million had been spent on temporary accommodation without appropriate procurement or contractual arrangements being evidenced. The problem emerged following the council’s decision to bring its previously outsourced procurement function back in-house. A review identified deficiencies in the contractual and procurement arrangements supporting expenditure on emergency accommodation. The council described the expenditure as having been incurred unlawfully because the required legal and procedural framework had not been followed. However, the review found no evidence of dishonesty or misconduct by council staff. The council also indicated that the accommodation provided was appropriate; the financial weakness concerned its inability to demonstrate procurement compliance and value for money under the terms of the Procurement Act. This is particularly important for public authorities operating under increasingly demanding transparency and governance requirements.
We are running our very popular “Designing Contract Performance Management Regimes under the Requirements of the Procurement Act” course. 15-16 December 2026. This provides practical training to enable contract managers to establish robust performance measurement systems, manage supplier records and use evidence to support commercial decisions. This course is also available as an in-house tailored event.