Councils should use their spending power to make local economies more resilient, communities more sustainable and minimise the environmental impact.
Those are the conclusions of More Bang for the Public Buck, a new report from the Association for Public Service Excellence in partnership with the Centre for Local Economic Strategies. Their research reveals that local council contracts can now yield £2 for every £1 spent.
APSE chief executive Paul O’Brien said: “Using £175 billion public procurement power effectively can deliver huge benefits. Our previous work analysing the local economic footprint shows how a multiplier £1 of public spending can generate £1.64 in the local economy through strong employment and supply chains. If councils considered how to deliver community benefits through their procurement processes, that figure could rise to £2.”
CLES chief executive Neil McInroy said: “Imminent public sector cuts make it imperative that we start sweating the public sector pound to maximum effect. We in the local government community can do more to ensure public resources cradle and nurture the local economy through supporting local businesses, social enterprises, the voluntary sector and supply chains.”

