WORCESTER'S cash-strapped city council could save at least half a million pounds a year if managers were better organised when buying equipment and services, a report says.

A new study by the city's own assessment team has found vast amounts of taxpayers' money are being wasted due to the council's failure to buy more things in bulk from single suppliers, ranging from sports equipment and cemetery supplies to agency staff and hired consultants.

The council's Tory leadership, which this month pushed through £1.6 million of budget cuts following a reduction in its Government grant, says it is addressing the issue and is currently appointing a new procurement manager.

"There is significant potential for the council to make savings in both the prices it pays for goods, works and services, and in the cost of administering its procurement practice," concludes the internal audit report, which was presented to the council's value for money committee.

"Considerable work needs to be done in order to realise this potential."

The report highlights 21 areas where the council used 10 or more different suppliers over the course of last year. It says larger contracts with individual suppliers would save the council hundreds of thousands of pounds.

"It is reasonable to expect savings during the first year will be £500,000," the report states. "However, the council should aim to achieve savings of £1.8 million per year after five years."

Councillor Lucy Hodgson, Conservative committee member and deputy-mayor, said it was time to act on the report's findings.

"This committee perhaps thought things were ticking over a bit better than they were," she said. "This report has brought some things out the woodwork.

"I do think things are moving forward, but I would like to think this could be taken away and used to its full effect - we have often pussy-footed around. Surely something like this can help with our budget problems?"

Speaking after the meeting, the Tory cabinet member in charge of finance, Councillor Roger Knight said: "I'm very encouraged to read the report.

"I have always believed the scope was there to save money - though these figures are of course estimates."