Poverty and inequality are stark realities for too many of us in the UK. Low wages, poor working conditions, and lack of economic opportunity trap people into cycles of struggle that our social infrastructure – our hospitals, our social care, our social security system simply cannot cope with.
Inclusive growth that raises the standard of living for people is essential to tackling poverty and inequality. The Government’s budget has marked a significant change of direction towards growth and investment in public services. It now has the opportunity to use a largely untapped tool to help it build a stronger more sustainable economy – public procurement.
Every year around £390 billion of public money is spent by public authorities on goods and services affecting every corner of the country. If used wisely this spending can help create change which makes a lasting difference to people’s lives.
The Government now has the opportunity to shape spending for the long term future. It is currently preparing its National Procurement Policy Statement prior to the introduction of new laws governing public spending in February 2025.
Our recent report Public Good Procurement shows how public procurement can do more than simply purchase goods and services; it can lift communities out of poverty, promote fair wages, and build a stronger, fairer economy through:
- setting the Real Living Wage as a default condition of every public contract as a minimum – this will ensure that good employers are not undercut by the bad and will generate more money in local economies
- making Good Jobs a standard condition of very public contract - public money should not be wasted on employers who fail to guarantee their employees decent conditions at work - “bad work” drags down local economies and leads to increased pressure on hard pressed public services
- rebuilding local economies to support Good Work organisations - authorities have the power to reserve contracts for organisations and programmes designed to tackle discrimination in the labour market. Our research shows that if just 1% of procurement spending were directed towards such positive action employment programmes this would generate £3.9 billion of contracts – helping to support local delivery and address economic inactivity.
The Government has recently issued a National Procurement Policy Statement Survey. We are urging individuals and organisations to support our recommendations through responding to the survey and making the case for:
- Real Living Wages as a minimum for every public contract.
- Good working conditions as a baseline standard.
- Reserved contracts for social enterprises and local organisations that put communities first.
You can access the government survey here, which closes on 4 November. If you miss the deadline, you can still make your views known by emailing your MP or the transforming procurement team at procurement.reform@cabinetoffice.gov.uk.
As the government prepares to implement the new Procurement Act in February 2025, now is vital chance to influence policy.
Through working together - across Government, public authorities, business and civil society we can help ensure that public procurement becomes a true driver of inclusive growth. Its our money that pays for public services, let’s make sure it’s put to public good and help build a better future for all.
Together, we can make public procurement a force for good that lifts people up and builds a better future for all.
To read a copy of the full report you can find a copy here.
Further information about the campaign www.betterforus.org.uk