Title

Councils in Essex are boosting their local economies by spending £580m with small businesses every year. A survey, run by the Federation of Small Businesses (FSB), revealed local authorities were playing a key role in helping small firms survive the downturn. One council in the region spent almost 80% of its budget with local businesses. The FSB used the survey to highlight councils' under-use of procurement to sustain their local economies. Havering LBC topped the league table, with 78.5% of its budget being spent via small businesses locally – the area surveyed covered all Essex postcodes, including two London boroughs. However, Uttlesford DC spent just 6% of its budget with small local businesses. According to the FSB, the benefits of small businesses getting council contracts are cost effectiveness, quicker turnaround time, greater flexibility, and lowering councils' carbon footprint. FSB head of policy, Andrew Cave, said the Government needed to make it easier for small businesses to bid for council contracts. ‘I think there is a concern on the part of the Government that if it ring-fences public procurement for small businesses, it will have difficulty allocating contracts. This would be less of a problem if contracts were broken into smaller parts and if the application process was simplified. ‘Pushing public procurement down to the local level would be good for small businesses, but is also an investment in our local communities. It is too good an opportunity to miss.' The FSB is now lobbying the Government to ring-fence 30% of the annual procurement budget for small business contracts; give small businesses free access to public contract biddings; and to simplify pre-qualification questionnaires. To see a copy of the FSB survey, visit www.fsb.org.uk/essex.

Title

FINANCE

Essex councils boost local firms with £580m spend

SUBSCRIBE TO CONTINUE READING