The cancellation of HS2 last month shone a bright light on how we determine the “best use” of public money and how that money can (or cannot) be used to address the social and economic challenges we face. These are questions that procurement professionals in local and regional government face every day.
”They return the love around here, don’t they?” – Guy Garvey
In its recently published Levelling Up White Paper, the government argued that the power of public procurement should be used to deliver support to communities and pledged to put social value at the heart of government spending. The forthcoming Procurement Bill will, the government argue, provide the means to realise this ambition. In this, there is much that can be learned from the work of Manchester City Council.
This article originally appeared in The MJ.
Before COVID, a staggering 17.5% of UK public procurement contracts were won by companies with a connection to a tax haven, harming our economy by extracting tax receipts as a result of profit shifting. There is no evidence to suggest this situation has improved over the past year. While many loopholes have been closed, there is still no national policy restricting public contracts to organisations that fail to pursue good tax conduct within their supply chain – either in the UK or beyond. We know the demand for change exists – two-thirds of the public say they would rather shop or work with a business that can prove it is paying its fair share of tax. Councils can and must use their powers to promote exemplary tax practice in their local areas.
For the past 13 years, CLES have been working with Manchester City Council to harness its procurement spend and maximise the economic, social and environmental benefit generated for its people, place and the planet.
In this interesting session there was broad agreement by the panel and delegates that a change in perceptions about procurement is needed: procurement professionals should be encouraged to think beyond bureaucratic and technical considerations and to consider procurement as a lever to address economic, social and environmental challenges.
Our collaboration has helped build a more inclusive economy over the last decade. The early adoption of an ethical procurement policy, a unique social value weighting of 20% in the tender process and a focus on supplier engagement in areas of deprivation has put Manchester City Council at the forefront of progressive procurement practice.
“CLES is working with councils across the UK to build community wealth and create good local economies for all.”
Progressive procurement is one important part of community wealth building: a systems approach to economic development built on local roots. It aims to reorganise local economies to put control back in the hands of local people, with wealth being generated, circulated and held locally. CLES is working with councils across the UK to build community wealth and create good local economies for all.
