A decade after breaking HMRC’s Aspire deal, the Post Office scandal exposes glaring similarities

Procurement pitfalls

I've witnessed first-hand the pitfalls of public sector procurement relying on large, single-source contracts. The Post Office Horizon scandal, with its echoes of the Aspire contract I helped dismantle at HMRC a decade ago, exposes a systemic issue that demands immediate attention.

While we had a victory, it seems the lessons learned were fleeting. Horizon exposed how relying on a single supplier breeds negligence, fosters complacency, and ultimately, harms the very people government should protect.

The fundamental question remains - has government procurement truly changed?

Back in 2012, HMRC faced conflicting directives - reduce costs, modernise our systems, but avoid upsetting suppliers. It felt like an impossible balancing act. But even then, we saw the potential for innovation and the value of smaller, nimbler companies. The Aspire renegotiation aimed to break the mould, allowing more SMEs to contribute.

Has Brexit stifled this progress? Has it further entrenched large system integrators, limiting innovation and competition? Are they still prioritising maintaining legacy systems instead of embracing data-driven, microservices architectures that minimise dependence on outdated IT?

The answer seems self-evident.

The Post Office debacle exemplifies the ongoing failure to learn from past mistakes. We cannot continue throwing money at monolithic suppliers who view taxpayers as their meal ticket. A systemic overhaul of public sector procurement is needed, including:

• Ending the reliance on single-source contracts. Encourage competition and innovation by fostering a diverse ecosystem of suppliers, particularly SMEs.
• Prioritise transparency and accountability. Involve all stakeholders in decision-making, implement robust oversight, and hold all parties responsible for outcomes.
• Focus on data and microservices. Break free from legacy systems, embrace cutting-edge technology, and empower innovative solutions that drive efficiency and cost reduction.

The Post Office scandal is a wake-up call. We cannot afford to let history repeat itself. It's time to break the cycle of wasted taxpayer money and create a procurement system that serves the public, not the interests of privileged suppliers.

Louise McCarthy was IT transformation director at HMRC from 2009 to 2012, and subsequently fulfilled a similar role at Aviva, Specsavers, the European Bank for Reconstruction and Development and HSBC. She is now a non-executive director and board advisor for a number of companies.