Simpler rules regulating how councils buy goods and
services after Brexit could boost local growth and create jobs,
the Local Government Association says today.
Council leaders say the Government needs to introduce a
more efficient UK system regulating how councils buy goods and
services when we leave the European Union.
The LGA said this could include giving councils greater
ability to use local suppliers, specify a minimum local living
wage for their suppliers’ employees, or specify additional social
value so that companies awarded contracts can be asked to employ
or train a number of local people.
Councils currently have to follow EU-wide advertising and
award procedures when they buy goods and services. The process
sometimes sits uneasily with supporting the local economy. The EU
process can also take between 3 and 18 months – twice as long as
typical private sector procurements.
Almost no public contracts end up being awarded to
companies in other EU member states. Only 20 per cent of English
councils receive EU expressions of interest from companies based
in other EU countries. Across Europe, only 1.6 per cent of public
contracts are awarded to companies in other member states.
The LGA says a “lighter-touch” system which simplifies this
processes, and provides more flexibilities to promote local
growth, is vital so that councils can procure to shorter
timescales and lower high administration costs for businesses,
especially small and medium-sized enterprises.
Councils in England, who collectively spend £55 billion per
year on goods, works and services, will also still need to be
able to advertise any contract of any size EU-wide should they
wish to after Brexit, it said.
Cllr Kevin Bentley, Chairman of the LGA’s Brexit Task and
Finish Group, said:
“The UK’s exit from the EU will have a significant impact
on local government, creating challenges that need to be
addressed but also opportunities to do things differently.
“The way councils spend money has a huge bearing on local
growth and job creation. But EU rules over how they buy goods and
services can stifle those efforts and take up time and
money.
“Regulation of public procurement will clearly continue to
be necessary when we leave the EU to allow councils to continue
to demonstrate best value for money and ensure effective and fair
competition.
“But introducing more local flexibility and easier
procurement rules after Brexit would provide more community
benefits and more growth opportunities for SMEs. It would also
allow councils to promote local suppliers and local labour and
ensure workers earn a decent wage.”
NOTES TO EDITORS
-
There was a diversity of views among local government
about Britain’s membership of the EU. To reflect this, the
LGA remained neutral during and post the referendum.
