Manchester City Council is playing a ‘pioneering role’ in reinvesting spend back into the local economy with its progressive procurement policies, report says.
A study published today by the Centre for Local Economic Strategies (CLES) identified key changes that have been undertaken by the city council over the last 10 years.
The Power of Procurement II found the new corporate procurement department had led to over £65m of efficiency savings.
It also discovered the proportion of total procurement spend with organisations based in, or with a branch in, Manchester has increased from 51.5% in 2008/09 to 73.6% in 2015/16.
Spend with organisations based in, or with a branch in, Greater Manchester has increased from 86.5% to 90.7%, the report said. And 53.3% of Manchester City Council’s procurement spend is with SMEs.
It also found re-spend by suppliers back into the Manchester economy has increased from 25p in the £1 in 2008/09 to 43p in the £1 in 2015/16.
‘We are really proud to have worked in partnership with Manchester City Council for the last ten years to instigate such significant change for the benefit of local people and business,’ said Matthew Jackson, deputy chief executive of CLES.
‘The work demonstrates the importance of understanding where procurement spend goes, linking procurement to economic development, and influencing the supply chain to enhance their social value.
‘The work must continue with more progressive procurement being at the heart of devolution and public service reform across Greater Manchester.’
Cllr Carl Ollerhead, who chaired the task and finish group which produced the council's ethical procurement policy, said: ‘As a council we are determined to ensure that anything we spend delivers the maximum social and economic benefit for Manchester.
‘Our ethical procurement policy obliges us to bear this in mind whenever we are buying goods or services.
‘These figures are extremely encouraging and suggest that we are continuing to make good progress and helping to support thousands of jobs in Manchester.’
