The move aims to stop councils from introducing
restrictions on the companies and countries they use –
particularly by introducing boycotts on goods from
Israel.
These latest plans would require local authorities by law
to treat suppliers fairly and in line with the British
government’s policies. It would mean no council could
boycott any country or industry unless restrictions have
already been put in place by the government. This follows
rules set by the World Trade Organisation requiring all
member countries to treat suppliers equally and without
prejudice.
Rules were introduced earlier last year which prevented
councils from using local government pension policies to
introduce boycotts. New Cabinet Office guidance was also
introduced in February 2016, which govern the procurement
of goods and services by public bodies.
Today’s announcement applies to councils, and would make
following the British government’s foreign policies a
legal requirement when buying goods and services –
effectively outlawing locally-imposed boycotts.
Communities Secretary said:
We need to challenge and prevent divisive town hall
boycotts which undermine good community relations.
No council should be boycotting any company or country
unnecessarily – instead their main focus should be
delivering the value for money taxpayers rightly
expect.
We will clampdown on these inappropriate and needless
boycotts once and for all.
Stopping boycotts which damage Britain
Councils also have a clear duty to make sure they deliver
value for money for their residents and to maintain a
high quality of service.
Mr Javid also confirmed that he would look to put
government guidance published last February on a legal
footing to make clear that councils should not introduce
boycotts of countries or companies when making
procurement decisions. Similar boycotts have led to the
removal of Kosher food from the shelves of supermarkets,
or calls for Jewish films to be banned.
This will mean public authorities have to treat suppliers
equally, and not discriminate on geographical or other
grounds when buying goods or services, unless they are in
line with existing restrictions put in place by the
government.
Further information
Public sector procurement law applies to central
government, executive agencies, non-departmental public
bodies, the wider public sector, local authorities and
NHS bodies.
The best value
guidance provides powers for the Secretary for
State to intervene in a council if it is in breach of the
regulations or statutory guidance.
These new measures are in line with the World Trade
Organisation Government Procurement Agreement, which
requires its members to treat suppliers from another
member country no less favourably than its domestic
suppliers.