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

Service Manager - Care Leavers

Cheshire East Council
£54,994 per annum - £62,777 per annum
We're looking for an experienced and passionate Service Manager to join Cheshire East Council. Location TBC
Recuriter: Cheshire East Council

SEND Plan Writer

Cheshire East Council
£31,537 - £34,434
We're looking for a dedicated SEND Plan Writer to join Cheshire East. Macclesfield, Cheshire
Recuriter: Cheshire East Council

Independent Reviewing Officer

Cheshire East Council
£42,072 - £54,994
Make a difference for children in care Macclesfield, Cheshire
Recuriter: Cheshire East Council

Occupational Therapy Lead

Gloucestershire County Council
£48,226 - £51,356 per annum
Are you passionate about supporting adults to live independently and achieve what matters most to them? Gloucestershire
Recuriter: Gloucestershire County Council

Adult Education Director

City Of Doncaster Council
DR1 £45,564 to DR8 £52,209
We are seeking an experienced and inspirational Further Education leader Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner