Policy
Chamber Calls for“ Local First” Procurement Approach to Keep Lancashire’ s Pounds in Lancashire
New research from the North & Western Lancashire Chamber of Commerce has revealed significant opportunities to increase the amount of public sector spending that remains within Lancashire’ s economy, supporting local businesses, jobs and supply chains.
The report, based on Freedom of Information responses from local authorities across Lancashire, highlights substantial variations in the proportion of procurement expenditure retained within local economies and raises important questions about how public sector purchasing decisions can better support local economic growth.
The Chamber’ s analysis found that whilst some councils demonstrate strong performance in local procurement, large amounts of public expenditure continue to flow outside both local authority boundaries and Lancashire as a whole. The report argues that public procurement should be viewed not simply as a purchasing function but as one of the most powerful economic development tools available to local authorities.
Among the findings, West Lancashire Borough Council recorded the highest level of spend retained within its own authority area, at approximately 60 %. However, the report notes that a significant proportion of this figure related to a single high value contract, highlighting the importance of measuring procurement success not only by the value of spending retained locally but also by the number of local businesses benefiting from public sector contracts.
Public sector procurement in Lancashire
Where Does Lancashire’ s Public Money Go?
5
Local Procurement Spend Retained Within the Local Authority Area(%)
Percentage of total procurement expenditure retained within each local authority area. West Lancashire records the highest level of local spend retention at approximately 60 %. However, comparisons should be treated with caution due to differences in reporting methods and because a £ 14 million contract awarded to a single supplier significantly influences the West Lancashire total. Overall, the data highlights substantial variation in the extent to which public expenditure is retained within local economies.
Wyre
Chorley
Fylde
Preston
South Ribble
West Lancashire 0 %
10 % 20 % 30 % 40 % 50 % 60 % 70 %
The Impact of a Single Contract on West Lancashire’ s Procurement Performance
Analysis of West Lancashire’ s local procurement spend showing the impact of a single high-value contract. While approximately £ 24 million was retained within the borough, around £ 14 million relates to one contract awarded to a single business. This demonstrates the importance of measuring procurement success not only by contract value but also by the number of businesses benefiting from public sector opportunities. In this case only 11 % of contracts are actually awarded to local suppliers.
£ 35,000,000.00 £ 30,000,000.00 £ 25,000,000.00 £ 20,000,000.00 £ 15,000,000.00 £ 10,000,000.00 £ 5,000,000.00
£ 0.00 Local Spend
Single contract
Other spend
Total Spend
Even after excluding the £ 14 million contract, West Lancashire remains one of the strongest performers in the county, suggesting that local procurement can be increased when there is a deliberate focus on engaging local suppliers.
48 | Autumn 2026