71 per cent of Manchester’s procurement spend is local

According to the Centre for Local Economic Strategies, Manchester City Council spent approximately £320 million procuring goods and services from local businesses last year.

During a Power of Procurement 2018 event, the Centre for Local Economic Strategies, which has been working with the council for more than a decade to improve its procurement policy and practice, announced that Manchester City Council spent £446 million with its top 300 suppliers in 2016/17. The proportion of spend with Manchester-based organisations has increased from five per cent in 2008/09 to 71.7 per cent in 2016/17. In monetary terms this is an increase in spend in the Manchester economy of £132 million.

Additionally, the proportion of procurement spend with SMEs has increased from six per cent in 2014/15 to 59.4 per cent in 2016/17.

Carl Ollerhead, chair of the council's Ethical Procurement Subgroup, said: “These new findings demonstrate that we are leading the way in ensuring that our procurement provides the maximum possible benefit for Manchester people - creating new local jobs and economic activity and increasing engagement with community initiatives by local businesses, while also delivering the best possible value for the city. Through a long-term commitment to studying and improving our procurement policy and processes, we’re now working more closely and productively than ever before with Manchester businesses, significantly boosting the local economy as a result.”

Matthew Jackson, deputy chief executive of the Centre for Local Economic Strategies, added: “CLES has been pleased to work collaboratively with Manchester City Council over the last ten years to progress their procurement process. Our objectives have always been to understand where procurement spend goes, shift the behaviour of procurement officers and influence the supply chain; all for the benefit of the Manchester economy and its residents. We are delighted to see the change which a more progressive approach has enabled in local economic, social and environmental terms.”