East Midlands Chamber has welcomed a government announcement to strengthen the role of public procurement in creating British jobs and developing local skills. The reforms raise the weighting for local community benefits from 10% to 20% on major contracts and simplify requirements so smaller firms are less likely to be deterred from bidding due to the complexity.
Bidders for central government contracts will be judged on commitment to high-quality jobs, training and routes into work for young people, including apprenticeships and work placements. The changes increase the social value score to 20% for contracts worth £5m or more and raise the threshold for certain requirements so they normally will not apply to contracts under £1m. Implementation is due from 1st January 2027 with technical guidance expected this Autumn.
The reforms could help boost growth in the East Midlands by directing public spending to local skills development and by making it easier for scaling and innovative small firms to compete for public sector work.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “With the public procurement market worth around £90bn a year, there is potential for meaningful local impact if commitments are delivered. Requiring measurable outcomes is something I welcome so businesses deliver on their pledges and social value moves beyond a tick-box exercise.
“Clear, practical guidance will be essential for firms to understand how to meet new expectations and I look forward to seeing further detail on the Government’s technical guidance in Autumn.”
