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

Head of Resident Engagement

Ealing London Borough Council
up to £93k
If you’re a housing professional looking for a job that will stretch and reward you in equal measure London (Greater)
Recuriter: Ealing London Borough Council

Head of Housing Allocations & Accommodation

Ealing London Borough Council
up to £93k
If you’re a housing professional looking for a job that will stretch and reward you in equal measure London (Greater)
Recuriter: Ealing London Borough Council

Assistant Director Housing Demand

Ealing London Borough Council
up to £114k
At Ealing, our mission is clear
Recuriter: Ealing London Borough Council

Chief Finance Officer

Liverpool City Council
Up to £187k
You’ll play your part in accelerating this progress, and will share our vision Liverpool, Merseyside
Recuriter: Liverpool City Council

Director of Education, Partnerships And Strategy

Brent Council
CIRCA £150,000
You will play a leading role across the wider children’s system, working closely with health London (Greater)
Recuriter: Brent Council
Linkedin Banner