Government to prioritise job creation in public contracts
The UK government is overhauling its £90bn public procurement system to give higher scoring weight to regional job creation and youth support.
Stock photo for illustration only, not from the actual event
- Overhauling the £90bn public procurement system
- Doubling the benefits weighting from 10% to 20%
- Focusing heavily on local job creation and youth training
- Environmental groups raise concerns over green targets
The UK government is set to overhaul its £90bn public procurement system, requiring bidding companies to prove they are actively generating regional jobs rather than focusing primarily on green and social targets. This policy shift comes as authorities attempt to tackle the ongoing youth unemployment crisis, with officials aiming to generate growth across every region.
Previously, companies bidding for government contracts were evaluated on various metrics, including value for money and community benefits. Under the new rules, the Cabinet Office announced that the weighting assigned to these community benefits will be doubled from 10% to 20% for contracts valued at £5m or more. Past evaluations accounted for broader social values such as equality, diversity, and net zero initiatives.
The revised 20% measure will focus entirely on job creation. Bidders will earn extra credit for offering local jobs paying above the minimum wage, filling local skills gaps through training, and providing 45-day work experience placements for young people. Office for National Statistics (ONS) figures indicate that more than one million individuals aged 16 to 24 are currently not in education, employment, or training (Neet).
Stock photo for illustration only, not from the actual event
Leveraging public procurement as a tool for regional economic development allows governments to directly influence corporate social responsibility. By tying multi-billion-pound contracts to local job creation, policymakers can target structural unemployment directly. However, balancing these employment mandates with strict environmental benchmarks remains a central debate among policymakers and advocacy groups.
Despite the focus on employment, green groups criticised the proposals, arguing that supporting young workers should not come at the expense of environmental protection. Meanwhile, Cabinet Office Minister Mark Ferguson stressed that businesses securing government funding carry a responsibility to give back to their local communities.
"Every pound of taxpayer money should be spent in a way that benefits local communities — creating good jobs and giving young people the skills they need for the future."
Andy Burnham
Source: BBC Politics
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