I announced to the House on 26 January 2011, Official Report, columns 10-11WS, that I had asked Lord Currie of Marylebone to undertake a review of the Government’s single source pricing regulations, which include the Government Profit Formula (GPF) overseen by the Review Board for Government Contracts. Lord Currie published his recommendations in October 2011 and they are currently the subject of consultation with industry and across Government. Pending the outcome of those discussions, the review board has been asked to maintain the existing arrangements.

The review board recently completed their 2012 annual review of the Government Profit Formula and has recommended revised allowances. The Government have accepted the board’s recommendations and the updated allowances have been agreed with industry.

The recommendations will be implemented for new single source work in accordance with the arrangements agreed with industry and published in an addendum to the review board’s report, a copy of which will be placed in the Library of the House.