The government is not making full use of its buying power when dealing with suppliers, according to serial entrepreneur and Topshop owner Sir Philip Green.

Sir Philip - who was asked by David Cameron to look at how effectively government departments spend their money - has reported that the government fails to make the most of its scale, buying-power and credit rating.

"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," said Sir Philip Green.

The government are putting the final touches to a programme of deep cuts in public spending, due to be announced on the 20th of this month.