Creating high quality British jobs and boosting skills in local
communities will be key requirements for companies to win
contracts for major infrastructure projects, under proposals to
be consulted on.
Cabinet Office minister has ordered the overhaul of public procurement rules
to maximise the benefit to working people, as this
government invests in Britain's future following the
Spending Review with billions for new roads, railway lines,
hospitals and schools.
The first job of this Government was to stabilise the British
economy and the public finances. Now we move into a new chapter
to deliver on the promise of change.
The upcoming Infrastructure Strategy and Industrial
Strategy will detail plans for billions of pounds of
investment in projects across the United Kingdom that will create
jobs, prosperity and put more money in people's pockets.
The Chancellor of the Duchy of Lancaster, , said:
Whether it's building roads, railways or schools, we want to open
up opportunities on major infrastructure projects for firms that
boost British jobs and skills.
The new rules will deliver on our Plan for Change by rewarding
companies that put money in working people's pockets as we invest
in the country's future.
Under the changes proposed in the Cabinet Office consultation,
public bodies would have to give more weight to firms that can
show they will boost British jobs and skills in their bids for
contracts.
The change will apply to major government projects including
transport investments, as well as school and hospital building
schemes.
The latest proposals will build on progress delivered in
February, when the Government set out an expectation for public
bodies to provide wider social and economic value when
awarding £385billion worth of public contracts every
year. The changes would make this a mandatory requirement in
all major new contracts.
These new proposed changes, that also form a central part of the
upcoming Industrial Strategy, will mean public sector
organisations also seeking to launch major infrastructure
projects will reward suppliers that can show they will bring
benefits targeted to the specific needs of a community.
For example, when assessing how a company could deliver a road
building project, a public body would need to consider how the
firm would offer benefits such as apprenticeships, T-level
industry placements, opportunities for care leavers, or helping
people get into work and stay in work in that area.
In the past companies have made pledges when they are bidding for
a contract but don't always follow through. Under these plans, we
will make sure that companies deliver their promises on skills,
jobs and local opportunities.
A new simpler approach to social value will be developed that can
provide a simpler set of criteria for public bodies to use, with
clearer rules on monitoring how suppliers are delivering on
contract requirements, such as new jobs and training
opportunities created.