Title

FINANCE

Scottish councils should 'target local economies'

Campaigners have called on Scottish councils to spend more with small and medium-sized enterprises (SME).

Campaigners have called on Scottish councils to spend more with small and medium-sized enterprises (SME).

Scotland's 32 local authorities spend more than £6.1bn a year procuring goods and services, but the Federation of Small Businesses (FSB) said the average council spent only 19.7% of their procurement budget with SMEs in their area in 2015/16.  

The data exposes a variation across local authorities, with West Dunbartonshire Council delivering just 5.8% of its budget with local firms, but Shetland Islands Council using more than half (53.6%) of its spending power to boost its local economy.

The FSB said all of Scotland's city councils, with the exception of Aberdeen, spent less than one pound in four with local SMEs.

Scottish policy convenor for the FSB, Andy Willox, said: ‘Council budgets are under significant pressure.

'That's why it is important that they squeeze every drop of value out of their spending power by targeting it on their local economies.

‘We're calling on every Scottish council to increase their spending with local firms by two per cent per year, delivering a £600m boost to Scottish business by 2021.'

 

FINANCE

The public will accept straight talk from politicians so long as there is a rationale

By Michael Burton | 20 May 2026

By claiming the public could have both high public spending and low taxes, the main parties opened the floodgates to the siren voices of the populists, says ...

FINANCE

Reform's good local government problems

By Ann McGauran | 20 May 2026

Ben Bradley talks to Ann McGauran about the implications of Reform UK’s huge election gains for reorganisation and delivering efficiencies – and he shares th...

FINANCE

Why councils need to rethink construction procurement

By James Wright | 15 May 2026

For councils facing increasing complexity and scrutiny, getting the fundamentals of construction procurement right has never mattered more, says James Wright.

FINANCE

Regeneration: Developing devolution

By David Blackman | 13 May 2026

UK plans for fiscal devolution, announced by chancellor Rachel Reeves, could significantly reshape how city regions fund transport and regeneration projects....

Popular articles by William Eichler