A small business federation has hailed Angus Council’s decision to “buy local” as a major breakthrough.
Angus Council agreed to adopt a “buying local” procurement policy following a meeting of the policy and resources committee in Forfar.
The policy follows a report from its procurement sounding board, established in 2013 to determine the extent to which the council buys goods and services from Angus firms.
Angus Council aims to be a leader for the local government sector in its approach to buying local, with development of the local supply base’s capability to win council (and wider public sector) work.
The council will also use an analysis tool to maximise the opportunity of the local supply chain to win council contracts.
Charles Goodall, vice-chairman of the Dundee and Angus branch of the Federation of Small Businesses (FSB), said: “This is a major breakthrough for public sector procurement in Angus and we welcome the council’s positive actions.
“The FSB has campaigned for many years to encourage councils to retain a greater share of council taxpayers’ investment within the local economy.
“A recent report by the Federation of Small Businesses (FSB) showed that the average local authority spends £43 million per year with businesses in their area which generates £60m worth of economic impact locally.
“The survey also found that every £1 spent by a council with a local small business generates 63p worth of additional benefit for their local economy.
“This compares to an equivalent 40p figure for large local firms. While many of our members do win contracts, many are deterred by the process.
“We look forward to working with the council to create an environment in which small firms in Angus can grow and contribute to their local economy,” he said.
The council’s new policy will not prevent the evaluation of bids from companies outwith Angus and the tender process would still apply to ensure best value for money.
The policy recognises the relationship between improving the council’s procurement structures and achieving its ‘buying local’ ambitions.
A report stated it was “not a quick fix” but was “bold and challenging” and its aim is for the council to be a leader in this aspect of its procurement.