New council policy brought extra £80 million to local economy

Local businesses are benefiting from an extra £80 million this year after Sheffield City Council changed their procurement policy.

By Molly Williams, local democracy reporter
Thursday, 04 July, 2019, 16:45
Photo by Dominic Lipinski

Last year the council launched a new programme to keep more money in Sheffield, by awarding council contracts on their ability to keep spend in the local economy and support businesses in the area.

Under the new rules, when work is put out by the council at least one quote must be from a local business.

A package to help local businesses bid for contracts was also developed.

Councillor Olivia Blake, deputy leader of the council and cabinet member for finance, said: “The vast majority of people in our city are employed by small businesses. That’s why its important that we do everything we can to keep our public spending within the city’s economy and I am pleased to see that Labour’s new policy is seeing more contracts going to small businesses.

“We are also committed to bring council contracts in house wherever possible and such as the repairs and maintenance service. We’ve achieved a lot in the first year, but this is just a start and we want to go even further.”

As well as keeping £80 million more, more than half of all the contracts the council are now awarding are with local businesses.

It comes under the Ethical Procurement Policy, which also works to ensure successful bidder pay their staff the real living wage.

The policy change was brought in last year after a number of years of modifications to make it clearer and scrutiny from councillors, opposition and campaigners.