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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Autism Training Coodinator

Essex County Council
£48121.0000 - £56612.0000 per annum
Autism Training CoodinatorFixed Term, Full Time£48,121 to £56,612 Per Annum Location
Recuriter: Essex County Council

Learning Engagement Support Officer Arts

Durham County Council
Grade 6 £28,142 - £31,022 (Pay award pending)
Durham County Council’s Culture, Sport and Tourism Service delivers outstanding cultural experiences across the council's culture venues and programme Durham
Recuriter: Durham County Council

Administrative Officer

Durham County Council
Grade 4 £25,583 - £26,824 (Pay award pending)
Be the welcoming face and organisational heartbeat of the Education Development Centre & Durham Leadership Centre We’re looking for a proactive, hig Spennymoor
Recuriter: Durham County Council

Health and Safety Technical Assistant

Durham County Council
£26,403 to £28,598 p.a. (Grade 5) Pay Award Pending
We have a full-time opportunity available for a Health and Safety Technical Assistant to join our team.  The post is temporary for a period of 12 mont Durham
Recuriter: Durham County Council
Linkedin Banner