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Double money with community benefits, councils told

Councils could double their money as well as strengthen local economies and communities by using ‘progressive procurement’, according to a new report.

By building economic, social and environmental benefits into contracts, councils could yield £2 for every £1 spent, says the Association for Public Service Excellence (Apse).

Its guide considers the barriers preventing councils getting the most from their procurement and draws upon best practice examples.

The research, in partnership with the Centre for Local Economic Strategies, also highlights measures including:

• Introducing specific ‘community benefits’ clauses in contract evaluation
• Building strong relationships with local suppliers
• ‘Contract unbundling’ to enable smaller suppliers to compete
• Advertising locally through a procurement portal

Apse chief executive, Paul O’Brien, said: ‘Our previous work analysing the ‘local economic footprint’ shows how £1 of public spending can generate £1.64 in the local economy through strong employment and supply chains. If councils considered how to deliver community benefits through their procurement processes, that figure could rise to £2.

‘Achieving community benefits is not just about the money. By looking carefully at how we procure goods and services, we can start to have a real impact on the environment and well-being of communities.’

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Mon 8th March 2010

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More information

More bang for the public buck: a guide to using procurement to achieve community benefits http://www.apse.org.uk/research.html

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