71 per cent of Manchester City Council’s procurement spending goes to local companies, according to new analysis unveiled on Monday.
According to the Centre for Local Economic Strategies (CLES), the council spent around £320m procuring goods and services from Manchester businesses in 2016/7.
A decade ago, the percentage spent by the council on local firms was just over 50 per cent.
The findings were revealed by CLES at the Power of Procurement 2018 event, at Manchester Town Hall on Monday 5 March.
In addition to the direct economic benefits, the core findings from the analysis were that in 2016/17, the top 300 suppliers to Manchester City Council created:
- An estimated 68,862 hours of volunteering & community sector support activities;
- An estimated 705 apprenticeships in Manchester;
- An estimated 1,160 jobs in Manchester
- 423 employment opportunities for ‘hard to reach’ individuals;
- 70% of responding suppliers paid all staff an hourly rate in excess of that advocated by the National Living Wage Foundation
Manchester City Council has been working with CLES for more than a decade to improve its procurement policy and practice, with the aim of addressing local needs and maximising benefits to Manchester’s residents. Over this time, the council has been pioneering in embedding 'social value' into all aspects of its procurement cycle - establishing a minimum 20 per cent social value weighting for all procurements, to ensure that the social and environmental impact of activities are considered alongside cost when selecting suppliers.
The Power of Procurement event was held to reflect upon the progress made in Greater Manchester around embedding social value into progressive procurement activities. It focused on the activities undertaken by local authorities and the response of suppliers to the 20 per cent social value weighting.
Councillor Carl Ollerhead, Chair of Manchester City Council's Ethical Procurement Subgroup, said: “These new findingsdemonstrate that we are leading the way in ensuring that our procurement provides the maximum possible benefit for Manchester people - creating new local jobs and economic activity and increasing engagement with community initiatives by local businesses, while also delivering the best possible value for the city.
“Through a long-term commitment to studying and improving our procurement policy and processes, we’re now working more closely and productively than ever before with Manchester businesses, significantly boosting the local economy as a result.”
Matthew Jackson, Deputy Chief Executive of the Centre for Local Economic Strategies, said: “CLES has been pleased to work collaboratively with Manchester City Council over the last ten years to progress their procurement process. Our objectives have always been to understand where procurement spend goes, shift the behaviour of procurement officers and influence the supply chain; all for the benefit of the Manchester economy and its residents. We are delighted to see the change which a more progressive approach has enabled in local economic, social and environmental terms.”