A survey examining how councils can help boost cashflow to local businesses is causing a stir across local government as responses from the Shetland Islands to Cornwall have already been received ahead of a final report being announced later this year.
Leading into this year's Local Government Association Conference. Westco, an independent research team, is inviting councillors, council employees, including finance and procurement lead officers, to take part to help build a picture of council and supplier relationships nationwide.
SME cashflow and help for small businesses featured heavily in the Queen's Speech this week, this new survey is looking at whether local authorities do enough in this area.
The survey deadline is Thursday June 12, and the results will inform a report expected to be published later in the summer.
We want to focus the minds of local authority politicians on the benefits small businesses bring to a community, following this year's local council elections. For example, we have worked with Oldham Council in establishing faster payments to local suppliers, which resulted in a £2m rebate for the council to spend on frontline services.
Regardless of political persuasion, the first move that any councillor in England or Wales should make is to secure long-term benefits for small and medium-sized businesses in their area.
Local authorities have a responsibility to champion entrepreneurs, and promote geographic areas, but they can also look at their own suppliers and think about bringing in local businesses to carry out council functions and contracts."
Oxygen Finance has worked with a number of local authorities, from Oldham to Bristol, to help establish a better supplier and customer relationship between councils and their local businesses.
The idea is built on working together to provide a better service locally, whilst also creating an income for the council to spend on frontline services, through a rebate system for using local suppliers.
Inefficiency and unnecessary delays in the speed of payment processes can undermine supplier relationships and serves to ultimately hold back economic growth.
Oxygen recently estimated that if all local authorities and the NHS were to implement an Early Payment Programme, such as the plan implemented in Oldham, where suppliers are paid within 0-10 days, the income generated for the taxpayer could be enough to build 10 new national hospitals.
The survey is available here: http://www.surveygizmo.com/s3/1602729/Westco-Supplier-Relationships-Survey-2014
Roberto Moretti is, chief executive of Oxygen Finance Ltd
