Fleet specialist throws down gauntlet to coalition

Neil McCrossan, the chief executive of Nexus, a fast-growing, private equity-backed Leeds business, said existing procurement processes are defeating cost-saving targets.

He told the Yorkshire Post: "Across government, hundreds of millions of pounds are spent every year on vehicle rental and the payment of private mileage allowances to staff using their own cars on government business.

"However, there is no overall control and co-ordination of this spend.

"It seems that every arm of local and national government, all the emergency services and the military each run their own tender exercises, placing individual contracts – at varying terms – with rental companies.

"Many rental companies will, therefore, have a number of different contracts with various different government clients, as we do, probably each at different terms. Yet it is all government spend, so why isn't it brought together into a single budget and accessed through a single portal available to all government users. That could be provided easily.

"A major commercial operation would not allow all its individual departments to tender for the same service separately, so why does government?"

Mr McCrossan added: "I know about the vehicle rental industry – I have been involved in it for 30 years so I am well qualified to comment on the waste and inefficiencies I see in this area."

Nexus is set to turn over 32m this year. It has completed two acquisitions since its buyout two years ago, which was led by industry veteran Mr McCrossan and supported by Isis Equity Partners.

A Cabinet Office spokesman declined to comment.