Public bodies across the UK are being urged to leverage their purchasing power to address poverty, inequality, and employment challenges in local communities. A new report titled Public Good Procurement, released by the #BetterForUs campaign, highlights the potential of public procurement to drive economic growth and create high-quality jobs. The report, backed by Aspire Community Works, an award-winning community enterprise, calls for reforms in how public contracts are awarded, ensuring they benefit local economies and improve working conditions.
Addressing Deep-Rooted Inequalities
Aspire Community Works, which has firsthand experience with the procurement process, argues that public procurement often drives wages down and exacerbates inequalities. The current system allows low-paying employers to dominate public contracts, putting good employers at a disadvantage. This ultimately harms workers and costs the public purse, as it often results in subsidizing employers who provide substandard working conditions and poor pay.
In contrast, the report advocates using procurement as a tool to drive positive social change. By prioritizing contractors that pay the Real Living Wage and provide good working conditions, the public sector could help reverse this trend and uplift communities. The report suggests that improving public procurement practices would not only provide better value for money but also reduce the public health and welfare burdens caused by bad jobs.
Recommendations for Change
The Public Good Procurement report outlines several key recommendations aimed at reforming the UK’s procurement process. These include:
- Real Living Wage for All Public Contracts: The report calls for the Real Living Wage to become the default for all public contracts, regardless of value. This would lift thousands of people out of poverty by ensuring fair pay for workers across the public sector supply chain.
- Better Working Conditions: It advocates for good working conditions to be mandatory in all public contracts, especially in low-paying sectors. This would ensure high-quality, sustainable opportunities for people employed on public contracts.
- Supporting Inclusive Employment Initiatives: The report suggests introducing targets to support ‘Good Works’ organisations. These organisations help people who are disadvantaged in the labour market to find employment, promoting inclusivity and diversity in the workforce.
- Linking Procurement to Sustainable Development Goals: The report urges the government to incorporate key objectives related to the United Nations’ Sustainable Development Goals (SDGs) into its upcoming National Procurement Policy Statement. This would align public spending with broader social and environmental objectives, ensuring procurement decisions contribute to a more sustainable and equitable future.
A Once-in-a-Lifetime Opportunity
Dr Katharine Sutton, the author of the report, stressed the importance of the upcoming Procurement Act, which is set to be introduced in February 2025. According to Dr Sutton, this legislation presents a unique opportunity for the UK Government to shape public procurement policies that prioritise social value.
“If only one percent of the UK’s procurement expenditure were allocated to positive action employment programmes, it could generate £3.9 billion for local communities and organisations dedicated to fostering sustainable employment,” she said. Dr Sutton highlighted that these programmes could be delivered through in-house teams, private contractors, or social enterprises, all of which can play a crucial role in uplifting disadvantaged individuals and communities.
Public Procurement as a Catalyst for Change
The report concludes by emphasising the need for public procurement to set a high standard for employers across the country. By using procurement to drive positive social outcomes, the government can promote inclusive growth and improve lives at a local level. Public bodies have the power to use procurement as a tool for good, fostering economic growth that benefits everyone, particularly those who have been traditionally left behind.
Practical Guidance for Public Bodies
In addition to its policy recommendations, the report provides practical guidance for public bodies looking to implement public good procurement. By following these guidelines, public sector organisations can ensure that their spending decisions contribute to social, economic, and environmental improvements.
Aspire Community Works and the #BetterForUs campaign hope the report will inspire public bodies to take bold steps in transforming the procurement process, ultimately creating a fairer, more inclusive economy for all.
