An important government procurement agency is wasting £500m, a report from the parliamentary public accounts committee (PAC) claims.

MPs have called on, an agency of the Office of Government Commerce, to improve efficiency savings over the next five years.

The agency provides frameworks and services agreements for departments across a range of sectors, including construction.

In the report, the PAC calls for greater co-ordination between and other procurement organisations.

The report says: “Public sector procurement is uncoordinated. This results in organisations paying more than they should for goods and services and incurring unnecessary procurement process costs.”