Building a Prosperous Local Economy
Engaging and supporting local businesses and voluntary organisations is a key priority for local authority leaders and chief executives. It is also critical for local communities, as doing so positively impacts:
Economic regeneration
Wealth creation, growth, and prosperity within local communities
Achieving sustainability goals and turning aspirations into reality
Public service delivery, particularly for specialist services (e.g., social care), and adapting to new delivery models for the 21st century
Developing local businesses and economic capacity is even more crucial when contracting authorities are geographically remote or when contract requirements are too small to attract larger bidders. Local policymakers understand that these factors directly influence how we plan, organise, shape, and deliver public services in the future.
SPS, in collaboration with the East England Local Government Association (EELGA) and World Commerce and Contracting (WorldCC), has been researching the role of local businesses—especially small and micro businesses—and the voluntary sector.
This research was prompted by the requirements of the new Procurement Act 2023, which risks being overshadowed by the rush to implement new procedures. The research findings are striking, showing that attitudes toward smaller businesses have remained largely unchanged since the 1970s. A rethink is long overdue, and our paper explores how you can become a catalyst for this much-needed change.
Government doesn’t understand business
A paper by Ken Cole
In writing this paper, I set out why government thinking and policy on what they term ‘small and medium enterprises’ is flawed and long overdue for modernisation. It shows what needs to be done for the 21st century to help power the ‘Holy Grail’ of economic growth. Doubling down on the importance of prompt invoice payment and/or providing training for organisations wishing ‘to sell to the public sector’ is not an appropriate response. Even with the new Procurement Act in place, many private organisations both in the UK and beyond will not engage with public bodies or will factor in significant cost mark ups to offset the often cumbersome and wasteful demands included during the commissioning and procurement process.
The paper sets out:
• The background to current thinking and policy making
• Why a significant step change is needed
• What needs to change and why it matters
• How English local councils in particular can become the catalyst for change
