The Voice TheVoice-09-2026 Issue 31 | Page 49

Policy
Public sector procurement in Lancashire
Where Does Lancashire’ s Public Money Go?
Local Spend Versus Local Supplier Participation
Comparison of local procurement spend and the proportion of local suppliers participating in public sector contracts. The findings suggest that high levels of local expenditure do not always translate into broad participation across the business community. Future procurement strategies should seek both to increase local spending and widen opportunities for a greater number of Lancashire businesses.
60 %
50 %
40 %
30 %
20 %
10 %
0 % West Lancashire Preston Wyre
High local spend does not necessarily mean that large numbers of local businesses are benefiting. Procurement performance should be measured both by the value of contracts awarded locally and by the number of businesses participating.
Example
Example
Preston Model Reality Check- Where Preston’ s Procurement Spend Goes
Distribution of procurement expenditure linked to Preston. Whilst around 62 % of procurement spending remains within Lancashire, only 12 % is retained within Preston itself. This indicates that public spending is contributing to the wider Lancashire economy but suggests there may be opportunities to increase engagement with businesses based within the city
Within Preston 12 %
Elsewhere in Lancashite 38 %
Outside Lancashire 45 %
While Preston retains around 62 % of procurement expenditure within Lancashire, only 12 % remains within the city itself.
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The report also examines the widely recognised Preston Model, finding that whilst Preston City Council retains a significant proportion of procurement spend within central Lancashire and the county itself, only a relatively small proportion( 12 %) remains within the city suggesting further opportunities to strengthen links with Preston based businesses.
The Chamber is calling on local authorities and emerging unitary authorities to adopt a stronger“ Local First” approach to procurement wherever legally possible and to introduce measures that widen participation amongst Lancashire businesses. Recommendations include setting local procurement targets, publishing
standardised procurement data, breaking larger contracts into smaller lots, increasing supplier engagement and improving support for SMEs seeking to access public sector opportunities.
Babs Murphy, Chief Executive of the North & Western Lancashire Chamber of Commerce, said,“ Every pound of public money spent has the potential to create jobs, strengthen local supply chains and support economic growth within Lancashire. Our research suggests that whilst there is some excellent practice across the county, too much public expenditure continues to leave local economies.
“ This is not about favouring local suppliers over better value alternatives. It is about ensuring Lancashire
businesses are given a genuine opportunity to compete for contracts and that the wider economic impact of procurement decisions is properly recognised.
“ The success of procurement should not be measured solely by how much money is spent locally. We must also consider how many businesses are benefiting, how many jobs and apprenticeships are being created and how effectively public spending is supporting economic resilience across our communities.”
The report also highlights concerns raised by Chamber members regarding the complexity of procurement processes, with many SMEs believing that contract structures, framework arrangements and
administrative requirements can create barriers to participation. The Chamber is urging public bodies to make procurement more accessible, transparent and proportionate to encourage greater involvement from local firms.
With local government reorganisation presenting a once in a generation opportunity to reshape public services, the Chamber believes now is the right time to embed local procurement principles into future procurement strategies across Lancashire.
The report concludes that increasing local procurement spend and broadening supplier participation will help ensure public spending delivers the greatest possible benefit for Lancashire’ s businesses, communities and residents.
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