The government is failing to get value for money from its property and other contracts and could do better by centralising procurement, according to a review by Topshop founder Sir Philip Green (pictured).

The impact of cuts could be softened if central government departments drove a harder bargain on leases and making use of the government’s strong credit rating, Green’s report to the Cabinet Office will say today.

In August, prime minister David Cameron announced that the owner of retail group Arcadia had been appointed to analyse the success of the government’s Operational Efficiency Programme.

Green has found that the government is spending millions of pounds each year renting empty offices and failing to bulk buy goods and services in order to get better value.

He said: “The conclusion of this review is clear – credit rating and scale in virtually every department has not been used to make government spending efficient. There is no reason why Government should not be as efficient as any good business.”

As part of the OEP, the government has been following through on promises made in the last government’s Budget 2010 in May that it will look into setting up strategic property vehicles.

The plan, revealed in former chancellor Alistair Darling’s Budget, is to have pilot vehicles up and running by next April.

On 1 October, we revealed that the government planned to extend its moratorium on new government leases until 2015.

Under the lease freeze, lease renewals and extensions will require sign-off from the Cabinet Office to ensure they are necessary and constitute value for money, and that all options have been explored.

• Sir Philip Green appointed government property adviser
• Green blasts government’s handling of properties
• Government announces freeze on new property leases
• Cameron pledges to follow Green’s property proposals
• Government plans new central property vehicle