Local Authority Procurement Economic Growth 2025-04-24
2025-04-24
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about using public procurement to drive economic growth. He references his long-standing passion for this area and the current government's procurement strategy.
I thank the Minister for her reply and for the excellent work she has done in putting together the procurement strategy. It has been a passion of mine for many years that we do not use procurement just to get extra social value but extra economic value, which will help local firms and local growth. That is what this statement does, and I hugely welcome it. May I ask the Minister whether she intends to issue guidance to local authorities so that they know how best they can achieve economic value? For example, they could proactively tell small firms what contracts are coming up or train them in how to tender, which is very difficult for them. The Government could also encourage local authorities to break procurement into lots, so that small firms have a better chance of bidding. Finally, local authorities could stop requiring an unreasonable number of years of accounts to be shown before small firms are permitted to bid.
Growth is the No. 1 mission for this Government. We have learned from local authorities such as Hammersmith and Fulham, which built economic value into procurement. The Procurement Act 2023 makes new tools available, but what is critical is how they are used to deliver innovation and growth. The Government will be consulting on new plans to set targets for small and medium-sized enterprise use for the wider public sector. We have delivered extensive training and developed new communities of practice to help make the most of this huge opportunity. As my hon. Friend has said, much of this is about culture and the use of the tools. We will be working with local authorities around the country to deliver on this enormous opportunity.
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Assessment & feedback
The Minister did not address the specific ask for guidance on achieving economic value through procurement measures such as proactive contract announcements, breaking procurements into lots, and reducing account requirements for small firms.
Response accuracy
Q2
Partial Answer
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Context
The MP is concerned about local authorities procuring at very low cost, potentially undermining fair payment to farmers and risking trade deals that could undermine standards for British-produced food.
My constituency is a food production powerhouse, and I welcome any steps by the Government to encourage local authorities to procure British-produced food. Local authorities are under extreme pressure to procure at very low cost. What steps is the Minister taking to ensure that, first, the Groceries Code Adjudicator ensures that farmers are paid fairly for the food they produce and, secondly, the Department for Business and Trade is not about to undermine the food they produce by entering a damaging trade deal with the US that would undermine those standards?
The guidance we put into the national procurement policy statement makes it clear that we want to deliver best value for money, which means not just cost but ensuring that we support growth and local suppliers. That allows local authorities to make decisions on what will create jobs and best opportunities for communities in the procurement of food.
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Assessment & feedback
The Minister did not address specific steps being taken by the Groceries Code Adjudicator or the Department for Business and Trade regarding fair payment to farmers and potential trade deals.
Response accuracy