26 February 2023

In the UK, local government procurement is governed by various legal frameworks, including the Public Contracts Regulations 2015 and the Utilities Contracts Regulations 2016, which aim to ensure that procurement processes are transparent, fair, and competitive.

In terms of spend, local governments in the UK are responsible for a wide range of services, including education, social care, waste management, transportation, and housing. According to data from the Office for National Statistics (ONS), local government in the UK spent a total of £261.9 billion in 2019/20, with the largest expenditure categories being education (27%), social protection (20%), and housing and community amenities (17%).

Over the past three years, local government spend has seen a slight decline, with total expenditure in 2019/20 being 1.3% lower than in 2017/18. This decrease is largely due to the ongoing impact of austerity measures introduced by the government in response to the financial crisis of the late 2000s.

In terms of procurement, local governments in the UK are required to follow certain rules and procedures when purchasing goods, services, and works from external suppliers. This includes advertising contract opportunities, evaluating bids, and awarding contracts to the most economically advantageous tender. Local governments are also required to publish information about their procurement activities, including contract notices, award notices, and contracts awarded.

One key aspect of local government procurement is the use of framework agreements, which are agreements with multiple suppliers that provide a range of goods or services over a set period of time. Framework agreements can be used by local governments to streamline the procurement process and reduce transaction costs. They can also help to promote competition and encourage small and medium-sized enterprises (SMEs) to participate in the procurement process.

In terms of spend, local governments in the UK have a number of obligations and priorities when it comes to the use of procurement money. For example, they are required to consider the economic, social, and environmental impacts of their procurement decisions. This can include using procurement to support local economic development, promote sustainability, and encourage the use of fair labour practices.

Local governments are also required to consider value for money when making procurement decisions. This means balancing the initial cost of a good or service with its long-term benefits and considering factors such as the quality and reliability of the product or service, as well as the potential for innovation.

In addition to these obligations, local governments in the UK also have a number of priorities when it comes to the use of procurement money. For example, they may prioritize the use of procurement to support local businesses and suppliers, or to promote the use of environmentally friendly products and services.

Over the past three years, local governments in the UK have spent a significant portion of their procurement money on a range of goods and services. According to data from the ONS, the top five expenditure categories for local government procurement in 2019/20 were:

Professional, scientific, and technical services: £13.3 billion
Wholesale and retail trade, repair of motor vehicles, and motorcycles: £10.9 billion
Construction: £10.6 billion
Education: £7.2 billion
Transport and storage: £5.6 billion

It is worth noting that these figures represent total spend across the UK and may not be representative of spend in individual local government areas.

In conclusion, local government procurement in the UK plays a crucial role in the provision of goods, services, and works to support the needs of communities. Local governments are required