Manchester People - Issue 45, New Year 2011

More than five thousand Manchester residents were employed in a year as a direct result of Council spending, according to new research.

The report by the Centre for Local Economic Strategies showed that the Council spent money on services that helped the local economy to the tune of £300million.

More than 85 per cent of its contracts for goods and services from its top 300 suppliers were with Greater Manchester firms, with 51 per cent being spent with suppliers in Manchester.

A report by the Centre for Local Economic Strategies, which complet- ed the research, looked at the impact the supply chain has on the local and social economies and said: "It is fair to say that Manchester City Council's practices have a significant impact on the local economy."

Councillor Bernard Priest, Executive Member for Finance and Human Resources, said: "The figures show that we are indirectly employing thousands of people in Manchester through our supply chain as well as contributing significantly to the local economy, and this is something we will strive to continue."

The report highlighted where the Council's spending goes geographically, the extent to which suppliers are re-spending in Manchester and their attitudes towards the environment and tackling worklessness.

Spending was found not just to benefit Manchester's economy as a whole but also individual wards, with the highest being spent on contracts in Ardwick (around £43million), City Centre (£41million) and Hulme (£39million).

Spending power:

How Council expenditure benefits the city

Figures from the report show:

• £183million of spending is with organisations within Manchester, of which £85million was spent with construction firms
• £309million is spent with Greater Manchester-based suppliers
• £29million is spent with Manchester-based voluntary sector organisations
• £17.5million is spent with Manchester-based small and medium sized businesses
• 5,225 Manchester residents are directly employed due to Council spending.

Case study: Securing jobs

Beswick-based Community Security Group and its subsidiary company Community Ironworks are contract- ed to provide security services for the Council. The company specialises in CCTV, intruder alarms and access control systems, as well as physical security such as fencing and gates.
Tony Nuttall, managing director of Community Security Group, said:

 "Our business is committed to supporting the community and local people, and we have a recruitment programme that favours long-term unemployed people in our area. We also use our influence to encourage our suppliers to take on local staff, particularly young people.

"Almost all our 46 employees hail from east Manchester, specifically the local Bradford ward. Jobs are advertised locally. Recruitment policy is focused firstly within a two-mile radius and then a five-mile radius from our base. We also offer training for local young people and adults to equip them with the skills they need to join the workforce."