Mark Whitehead 08 January 2019

Exclusive: Councils increase number of deals with SMEs and social enterprises

Councils are increasingly forging deals with smaller companies rather than big outsourcing contractors, according to the latest figures.

A report on public spending by market analysts Tussell in the wake of the collapse of construction giant Carillion shows five of local government's top 20 regular suppliers in 2018 were SMEs or social enterprises.

The amount of work being contracted out to the 20 biggest firms now stands at 25% of the total spent, after steadily declining since 2015 when it accounted for 30%.

Housing and leisure specialists Places for People has leapt to the top of the rankings for volume of local government spend after signing a joint venture with Surrey County Council worth £1.5bn over 15 years.

It is followed by Wates Group with £834m of spend and the French global construction firm Vinci SA which signed deals worth £214m.

Tussell's founder, Gus Tugendhat, said local government procurement was 'clearly moving in the right direction'.

He said: 'The proportion of value awarded to the top suppliers has been declining year-on-year, and it is great to see SMEs and social enterprises now making up a fifth of the top 20 suppliers to local government.

'We are hoping to work closely with local government buyers in 2019 to continue monitoring their progress towards social value goals in procurement, and to improve the quality of contracting data being published.'

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Traffic Management Orders Officer

Southwark Council
£45,852 - £53,319
Can you use your expertise in traffic management orders to help shape safer, more accessible streets? Southwark, London (Greater)
Recuriter: Southwark Council

Chief Executive

Aberdeen City Council
£188,973 - £199,973
This is one of the most significant leadership opportunities in local government. Aberdeen, Aberdeenshire
Recuriter: Aberdeen City Council

Executive Director for Place

Wokingham Borough Council
£148,609 per annum, plus benefits
Be an inspirational place shaper for Wokingham Wokingham Borough Council, Shute End/Home Working
Recuriter: Wokingham Borough Council

Contracts & Projects Technical Officer

Essex County Council
£31284.0000 - £35721.0000 per annum
We have an exciting opportunity for a Contracts & Projects Technical Officer to provide support to the Contracts & Projects Manager within our Operat England, Essex, Braintree
Recuriter: Essex County Council

Occupational Therapist - Adult Social Care

Essex County Council
£38487 - £51834 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner