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.'

Devolution and putting place first image

Devolution and putting place first

The real lesson of Andy Burnham's Makerfield success, argues Dr Jonathan Carr-West, is that place – not personality – is the key to Britain's future.
SIGN UP
For your free daily news bulletin
Highways jobs

Deputy Chief Executive & Director of Place

Pembrokeshire County Council
£132,063 - £145,050 plus lease car allowance of £9,576 and relocation package
As the custodian of place, you will lead a broad and influential portfolio Pembrokeshire (Sir Benfro)
Recuriter: Pembrokeshire County Council

Senior Traffic Engineer

Salford City Council
£47,181 - £50,269
Join us as a Senior Traffic Engineer to play a valued role in the regeneration of Salford Salford, Greater Manchester
Recuriter: Salford City Council

Head Teacher

Durham County Council
£67,898- £78,702
Permanent position- Full Time.   Required for 1 January 2027.  The Governors seek to appoint a committed, experienced and enthusiastic teacher with se Durham
Recuriter: Durham County Council

Applications and Development Officer

Durham County Council
£28,142 to £31,022 p.a. Pay Award Pending
A vacancy has arisen within our Microsoft 365 Team, part of Applications and Development, for an enthusiastic, customer-focused and flexible Applicati Durham
Recuriter: Durham County Council

Higher Level Teaching Assistant

Durham County Council
£30,024 - £33,699 (Pro Rata)
Fixed Term Contract until 31st August 2027 Full Time- Term Time plus 2 weeks Required to start 1st September 2026   The Governors seek to appoint an i Durham
Recuriter: Durham County Council
Linkedin Banner