Laura Sharman 22 July 2022

Councils spending £9bn a year more on local suppliers, research finds

Councils spending £9bn a year more on local suppliers, research finds image
Image: fizkes / Shutterstock.com

Councils are spending 46% of their procurement budgets with local suppliers, new research has revealed.

The research, conducted by Tussell, shows councils are spending £9bn a year more on local suppliers than they were in 2016. This is up from £16bn in 2016, to £25bn in 2021.

The data predicts councils are on track to spend over half of their procurement budget on local suppliers by 2025.

Locality is calling on more councils to join the Keep it Local campaign, which includes a commitment to increase local spend, commission services so they are 'local by default' and proactively support local organisations.

Tony Armstrong, CEO of Locality, said: 'Putting trust and power in the hands of local people and organisations reaps huge rewards. And the choices councils make about where to spend their budget can make a big difference.

'This new research shows that there is movement towards more local commissioning, and at Locality we see councils across the country starting to understand the benefits of keeping it local.

To make sure they’re truly helping local initiatives and supporting the community, we’re calling on all councils to join the Keep it Local coalition, so we can unlock local power and transform communities across the country.'

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