Research reveals a significant gap between what councils think local suppliers need and what small businesses say would help them win public sector work.
A new best practice guide is urging councils across England to rethink how they engage with local businesses and voluntary organisations, arguing that outdated procurement practices continue to exclude the very organisations best placed to deliver economic growth, social value and resilient local services.
Published by Local Government East and developed in partnership with local authorities and procurement leaders, Building a Local Business and Voluntary Sector Friendly Council provides practical guidance to help councils attract, engage and retain more small and micro businesses within their supply chains.
The publication comes at a time of increasing national focus on local economic growth, community wealth building and the role of public procurement in supporting local economies.
Drawing on research, interviews and survey responses from almost 100 businesses and voluntary organisations, including FIS, the study found that many smaller organisations feel excluded from council procurement opportunities, citing overly complex processes, difficulty identifying opportunities and a perception that councils primarily work with larger suppliers.
The findings also reveal a significant mismatch between council perceptions and supplier experiences. While there is a widespread consensus among councils to assume that additional training or “meet the buyer” events are the key to increasing participation, businesses consistently identified a need for councils to better understand the practical realities of operating as a small organisation, including limited time, capacity and resources.
The guidance argues that councils can make immediate improvements by simplifying documentation, using plain language contracts, adopting proportionate requirements, improving communication and taking a more proactive approach to engaging local suppliers.
Ken Cole, lead author and Local Government East Talent Bank Associate, said:
“Small and micro businesses are the backbone of local economies and account for the overwhelming majority of businesses operating across England. Yet many councils still unintentionally create barriers through their procurement policies and procedures that make it difficult for these organisations to engage.
This guidance demonstrates that becoming more business-friendly doesn’t require legislative change or significant investment. Often it means challenging assumptions, simplifying processes and recognising that smaller organisations operate very differently from large corporations.”
The report highlights growing evidence that increasing spend with local businesses delivers benefits far beyond procurement outcomes, supporting local jobs, strengthening communities, improving social value and contributing to environmental sustainability through shorter supply chains.
Sally Guyer, Global CEO of World Commerce and Contracting said
“This isn’t simply about procurement. It’s about how councils use their spending power to support thriving local economies and stronger communities.
While the project originated in the East of England, the challenges and opportunities identified are shared by councils across the country. Our ambition is for this guidance to help local authorities everywhere create more accessible and inclusive approaches to working with local businesses and voluntary organisations.”
The publication is also expected to form part of wider national discussions on the future of local procurement, including the World Commerce & Contracting webinar, Bridges not Barriers: Unlocking Local Procurement for Small and Micro Businesses. https://www.worldcc.com/events/event-calendar/bridges-not-barriers-unlocking-local-procurement-for-small-and-micro-businesses.html