-
Councils, police and fire authorities in England to now be
able to reserve bidding for lower-value contracts to just
local and UK suppliers.
-
Reforms pave way for more than £1 billion of potential spend
to be reserved every year for local and UK firms.
-
Latest in a series of reforms to open up government work to
small businesses and create skilled local jobs.
Small businesses are set to benefit from £1 billion of funds
every year through laws proposed today allowing local authorities
to reserve some contracts for suppliers in their area.
These reforms are the latest in a series to unlock growth by
slashing commercial red tape, simplifying the public contracts
regime and removing barriers for smaller firms to work with
government.
Under the changes, councils, fire and police authorities in
England will now be able to reserve competitions for their
lower-value contracts to UK-based suppliers and suppliers in a
defined local area.
, Parliamentary Secretary at the
Cabinet Office, said:
We're changing the rules that have held back councils from
investing in local businesses that are the lifeblood of local
economies.
This will put power back in the hands of our communities to drive
growth, unlock skilled jobs and create local investment that
rewards working people.
, Minister of State for
Local Government and Homelessness at the Department for Housing,
Communities and Local Government said:
We want councils to help create jobs, opportunities and growth
right across the country.
Making sure they can prioritise our brilliant local businesses is
a huge step forward in achieving that, and will mean more money
going to firms that know their areas best and can invest in the
communities they serve.
The move, disapplying section 17(5)(e) of the Local Government
Act 1988 in certain circumstances, gives local authorities the
tools to support growth in their communities, while maintaining
the core principles of fair competition and value for money when
awarding below-threshold contracts.
The new voluntary rules also brings the public sector in line
with the flexibility that Whitehall has to buy goods and
services.
It follows a new National Procurement Policy Statement published
in February, which set out an expectation for public bodies to
provide wider social and economic value when awarding their
contracts. Over the summer, the Government also consulted on
proposals that would utilise spending by public sector
bodies when buying everyday goods and services to create
more opportunities for local small businesses and social
enterprises, deliver social value by creating good local
jobs, open up work opportunities and boost skills.
Tina McKenzie, Policy Chair of the Federation of Small
Businesses, said:
It's great to see the Government listening to small businesses
and taking action. This is exactly the kind of practical reform
we called for - giving local authorities the tools to make it
easier for small firms to take on public work.
Small firms bring deep local knowledge, strong community ties and
specialist skills. When the system clears unnecessary hurdles and
lets them compete on fair terms, the whole community benefits.
Today's announcement is a welcome sign that those barriers are
finally starting to come down.
Cllr Dan Swords, Chair of the LGA's Public Service Reform
and Innovation Committee, said:
Councils have a key role in driving local growth and these
changes will give them greater freedoms to buy local, keeping
more of what they spend in their local communities.
Local suppliers, SMEs and voluntary and community organisations
will all benefit from councils being able to reserve
below-threshold contracts for them, creating jobs and increasing
supply chain resilience, to help meet our shared ambition with
government to boost inclusive local and national economic growth.
