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councils across England to rethink how they engage with local businesses and voluntary organisations, arguing that outdated procurement practices continue to exclude the very organisations best placed to deliver economic growth, social value and resilient local services.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

After eight years of service, Iain McIlwee confirmed today that later this year he will be stepping down as CEO of FIS and the process has begun to find his replacement. In this short article Iain reflects on his time at FIS and the exciting opportunity to lead the next chapter for the FIS and wider sector.

Eight years ago, I was entrusted with the role of Chief Executive at Finishes and Interiors Sector (FIS). Today, I am confirming that later this year I will be handing that responsibility on to someone new.

This has not been an easy decision as FIS has always been more than a job to me. I care deeply about this sector, the people within it and the vital role FIS plays in helping drive positive change. Representing our members has been one of the greatest privileges of my career and, hand on heart, I have given everything I have to that mission throughout my tenure.

There is never a perfect time to move on from something that means so much, but after eight years it feels like the right moment to pass the baton and allow someone new to lead FIS into its next chapter.

What has driven me every day in this role is doing right by the people. The businesses and individuals who turn drawings into reality, overcome challenges every day and quite literally put the wow into buildings. The trust placed in me by members and the FIS team over the years has been humbling, and I will always be grateful for it.

When I joined FIS, the organisation was still relatively early in its journey following the merger that brought together different parts of our sector under a single banner. Over the past eight years, we have continued to strengthen that collective voice, grow our influence and raise the profile of an industry that plays a critical role in delivering safe, high-quality and sustainable buildings.

The backdrop has been one of unprecedented challenge and change. Together, we navigated COVID, waves of inflation and supported the sector through the profound reforms that followed the Grenfell tragedy and continue to reshape construction. We have prioritised the competency agenda, strengthened our leadership on sustainability, championed better procurement through the Responsible No campaign and intensified the fight against poor payment practices and cash retentions. Seeing the Commercial Payments Bill progress through Parliament is a reminder of what can be achieved when industry comes together behind a shared cause.

No Chief Executive achieves anything on their own, and any success attributed to me is really a reflection of the people around me. I owe an enormous debt of gratitude to the FIS Board for their leadership and support, and to the amazing FIS team for their dedication, passion and unwavering commitment to our members.

As I prepare for the next chapter, I do so with complete confidence in the future of FIS. We have an outstanding team, a clear purpose and a membership that continues to demonstrate the very best of our sector. The work is far from done, but I know FIS will continue to play a leading role in driving positive change in construction.  To whoever follows me, I can only commend this role. If you are passionate about making a difference, bringing people together and helping to lead change, there are few opportunities in our industry that offer the same privilege, challenge and reward.

Before I sign off, I want to leave one final call to action.

FIS is at its best when members get involved. When people share their experience, challenge thinking, contribute expertise and work together to improve our sector, good things happen.  Whether you are already a member or considering joining, my message is simple: don’t take FIS for granted and don’t stand on the sidelines. The greater the participation, the stronger our collective voice becomes and the more we can achieve together.  My experience over the past eight years has shown me time and time again that when we come together behind shared challenges and opportunities, we are greater than the sum of our parts. More influential. More effective. Better able to shape the future of our industry.

FIS will always be defined by its members. Please continue to support it, challenge it and help shape it.

In return, my final promise is that I will leave nothing on the pitch over the next three months as we manage this transition and continue building on these strong foundations.

FIS is now welcoming applications from interested and ambitious candidates to lead the next chapter for FIS and the wider sector.

Could this exciting opportunity be your next career move? Find out more about the role and take the next step towards making an impact for the finishes and interiors sector.

Ahead of National Inclusion Week (14-18 September 2026), RNID is offering a range of free resources to help organisations build deaf awareness and create more inclusive workplaces. Getting involved is easy, and the resources can be used during the week and throughout the year.

In the workplace, a quarter (25%) of deaf people say they have experienced negative attitudes and behaviours from work colleagues. This figure almost doubles (49%) for British Sign Language (BSL) users, according to RNID’s ‘It does matter’ research (PDF 1.6mb).

Together we can change this. Sign up to receive RNID’s free resources to help your staff become more deaf aware – perfect for National Inclusion Week in September and beyond.

Sign up for RNID’s free resources

When you register, you’ll receive:

• Tips, posters and videos that are perfect for sharing with your colleagues during National Inclusion Week (14-18 September 2026) and throughout the year.
• Access to their exclusive events, including an upcoming webinar – Make your workplace inclusive: Build confidence talking about hearing loss, where storytellers and inclusive employers will share their top tips and experiences.

RNID is the national charity supporting more than 18 million people in the UK who are deaf, have hearing loss or tinnitus. They campaign to change public attitudes and help people hear better now. They fund groundbreaking biomedical research that will stop hearing loss and silence tinnitus. And they provide practical support and information over the phone, online and in local communities.

Ahead of National Inclusion Week (14-18 September 2026), RNID is offering a range of free resources to help organisations build deaf awareness and create more inclusive workplaces. Getting involved is easy, and the resources can be used during the week and throughout the year.

In the workplace, a quarter (25%) of deaf people say they have experienced negative attitudes and behaviours from work colleagues. This figure almost doubles (49%) for British Sign Language (BSL) users, according to RNID’s ‘It does matter’ research (PDF 1.6mb).

Together we can change this. Sign up to receive RNID’s free resources to help your staff become more deaf aware – perfect for National Inclusion Week in September and beyond.

Sign up for RNID’s free resources

When you register, you’ll receive:

• Tips, posters and videos that are perfect for sharing with your colleagues during National Inclusion Week (14-18 September 2026) and throughout the year.
• Access to their exclusive events, including an upcoming webinar – Make your workplace inclusive: Build confidence talking about hearing loss, where storytellers and inclusive employers will share their top tips and experiences.

RNID is the national charity supporting more than 18 million people in the UK who are deaf, have hearing loss or tinnitus. They campaign to change public attitudes and help people hear better now. They fund groundbreaking biomedical research that will stop hearing loss and silence tinnitus. And they provide practical support and information over the phone, online and in local communities.

FIS has expanded its industry-leading Competency Framework programme with the publication of four new frameworks covering Suspended Ceiling Installation, Complex Ceilings, Service Moveable Walls and Modular Partitions.

The latest additions build on the growing suite of FIS Competency Frameworks, providing clear, practical guidance to support competence, compliance and best practice across the finishes and interiors sector.

Developed in collaboration with FIS members, employers, manufacturers, training providers, CITB and wider industry stakeholders, the frameworks reflect real working practice and define the skills, knowledge, experience and behaviours required for individuals working in specialist finishes and interiors occupations. 

The expansion marks another significant milestone in supporting the industry’s response to the Building Safety Act, helping organisations demonstrate that individuals have the competence required for the work they undertake. 

The following Competency Frameworks are now available on the FIS website at https://www.thefis.org/membership-hub/publications/competency-frameworks/

• Suspended Ceilings (NEW)
• Complex Ceilings (NEW)
• Service Moveable Walls (NEW)
• Modular Partitions (NEW)
• Ceilings
• Drylining
• Fibrous Plastering
• Solid Plastering
• Raised Access Flooring
• SFS (Steel Framed Systems)

 Each Competency Framework provides a consistent, structured approach to competence and includes:

• Routes to competence – recognised qualification and training pathways for the occupation.
• SKEB statements (Skills, Knowledge, Experience and Behaviour) – detailing the competencies required for installers, including mandatory training and ongoing revalidation where appropriate.
• Implementation plans – outlining how the frameworks will be adopted across the sector, supported by assessment and training.

Together, these frameworks provide employers, individuals, clients and principal contractors with greater confidence that work is being carried out safely, competently and in accordance with both legal requirements and industry best practice.

The introduction of dedicated frameworks for Suspended Ceilings, Complex Ceilings, Moveable Walls and Modular Partitions reflects the increasing demand for greater role clarity within specialist interior fit-out disciplines. They establish consistent benchmarks for competence while supporting businesses in meeting client expectations, improving workforce capability and strengthening quality across the sector.

Commenting on the launch, Beena Nana, Head of Skills and Training at FIS said:

“These new frameworks give employers and installers a clear understanding of the skills needed for their roles. They will help improve standards across the sector and support businesses in meeting the requirements of the Building Safety Act.”

To underpin the Competence Frameworks, CITB, in partnership with Build UK and fire industry experts, have developed a free Fire Safety in Buildings e-learning course to improve an individual’s knowledge of fire safety measures in buildings. The course is suitable for anyone working in the design, construction, or maintenance of buildings, with a specific focus on installers and can be accessed here https://www.thefis.org/skills-hub/training-offers-for-members/fis-training-modules/fire-safety-in-buildings/

The full suite of Competency Frameworks is available at https://www.thefis.org/membership-hub/publications/competency-frameworks/

The CPA’s forecast for construction output has been downgraded further in its Summer forecast, due to the lagged impacts of the Middle East conflict that are starting to pass through to both the demand and cost sides of the UK economy. Construction output year-to-date so far in 2026 has already fallen by 1.6%, according to the Office for National Statistics, even before the impacts of the conflict and it is now expected to fall by 3.3% overall in 2026. This fall is due to activity weakening considerably in the key sectors of private housing new build and private housing repair, maintenance and improvement during the second half of the year. Output is still expected to rise by 1.2% in 2027 but the risks remain heavily on the downside.

Private housing is the largest construction sector and house builders have begun to report that homebuyer demand has weakened sharply in recent months in line with the increase in mortgage interest rates since the Middle East conflict. This will exacerbate the issue of affordability, which was already a problem before the conflict, especially for buyers in areas of the country with higher house prices. In lower-priced parts of the country, house builders will have to deal with sharp cost increases when site viability is already an issue. A spike in construction product prices in the second half of this year will come on top of a list of additional regulatory costs imposed over the last few years, with the Building Safety Levy coming into force in October 2026 and the Future Homes and Buildings Standard, which will be implemented in March 2027. Overall, private housing output is forecast to fall by 10.0% in 2026, a downward revision from -7.0% in the Spring forecast and output is forecast to remain flat in 2027, the same forecast as in Spring, but now from a lower level.

Private housing repair, maintenance, and improvement (rm&i) is the second-largest construction sector. Basic repairs and maintenance activities have largely continued as usual, but there has been limited activity in home improvement projects, typically the key driver of growth. Even though many homeowners had the finances for projects over the last two years, they have increasingly focused on saving rather than spending, especially on discretionary, non-essential items such as home improvement projects, and this is likely to be the case as the cost of living rises in the next 12 months. In the long term, government-funded schemes for energy efficiency in the private housing stock may drive further growth in solar photovoltaic and heat pumps, although skills shortages may hinder this. Overall, private housing rm&i output is forecast to fall by 8.0% in 2026 and remain flat in 2027.

There is still expected to be significant growth in infrastructure, the third-largest construction sector, given longer-term existing contracts, pipelines of activity and funding in place for future projects. Energy generation and National Grid distribution work are expected to continue growing strongly, as is water investment. There is greater uncertainty in rail, with the HS2 cost-saving ‘reset’ now expected to be published only in Spring 2027, and in roads, following the just-departed Prime Minister’s announcement that further defence spending would be partly funded by cuts to new roads projects. Overall, infrastructure output is forecast to rise by 3.2% in 2026, unchanged from Spring, and by 3.2% in 2027, a marginal revision down from 3.4% in Spring.

Commenting on the Spring Forecasts, CPA Head of Construction Research, Rebecca Larkin, said:

“Construction activity so far this year is already lower than a year earlier and there is still considerable concern that we are yet to see the key impacts of cost inflation on projects down on the ground or the extent to which it affects appetite for signing up to or starting new projects. The biggest questions are how rises in construction costs, financing costs and the cost of living will affect the privately-financed sectors of private housing, private housing rm&i and commercial. Consequently, these sectors are forecast to experience the largest falls in output over the next 12-18 months.

 

Even in areas where we forecast growth, there is an increased risk that rising cost inflation eats into the volume of construction work, even if the values of work are maintained. In addition, this rise in construction costs runs alongside the government’s imposition of 50% import tariffs for imported steel since 1 July 2026 and the prospect of even higher financing costs if the Bank of England raises interest rates, which make worsening viability a key barrier for new projects to progress.

 

The arrival of the new Prime Minister emphasises that the new government will have to focus on enabling house building and construction demand, as well as focus on reducing cost burdens on the whole construction supply chain if it is serious about pledges for more new homes, more and better quality infrastructure and the Net Zero transition. This is a pressing issue as essential capacity and skills have been lost in the last two years and this will only get worse as activity falls over the next 12-18 months.”