30 November 2006 | Rebecca Ellinor

Uncertainty over the future of the Office of Government Commerce is denting its credibility, according to a senior source.

As reported ( News, 21 September ), a cut in Treasury funding next year means some organisations have been reviewed, including the operations of the OGC.

This was conducted between January and June and Treasury ministers were expected to make a decision by early October. However as SM went to press they were "still reviewing options".

A senior public sector procurement professional told SM: "The credibility of the OGC among its client groups is beginning to be affected by the uncertainty. Some are not sure how strong a line they should take with stakeholders. It's not healthy for anybody."

An announcement is expected 'imminently' but a Treasury spokesman told SM: "No decision has yet been taken."

Announcements made by the Chancellor in the last budget implied a 5 per cent cut in the resource allocation across the entire HM Treasury group for the Comprehensive Spending Review 2007 period.

Financial aspects of the decision will take effect from April 2007 but other proposed changes are expected to take place before next spring.

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