Commons Sense

House of Commons · Ministers' Questions

Local Authority Procurement: Economic Growth

Thursday 24 April 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ben Coleman thanked the Minister for her procurement strategy and emphasized the importance of using procurement to boost economic value and local growth.
  • Helen Morgan inquired about steps the Government is taking to encourage local authorities to procure British-produced food, acknowledging the pressure to procure at low cost.
  • The Minister responded that the Procurement Act 2023 provides new tools and guidance to support local suppliers and job creation, aiming to deliver best value for money beyond just cost.

Topics (select to filter)

Questions & Answers

Q1 Ben Coleman Lab Chelsea and Fulham
Economy Business & Trade Local Government
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.

Question

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.

Answer from Georgia Gould (Parliamentary Secretary, Cabinet Office)

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.

Partly answered

Not addressed: 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.

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Q2 Helen Morgan Lib Dem North Shropshire
Business & Trade Agriculture & Rural Affairs
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.

Question

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?

Answer from Georgia Gould (Parliamentary Secretary, Cabinet Office)

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.

Partly answered

Not addressed: 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.

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