Businesses bidding for government contracts will face stronger tests on jobs, skills and local benefits under procurement changes announced today.
The Government said organisations seeking public work will be assessed on how they help local people develop new skills and support young people into apprenticeships or work placements. The public contract market is worth £90 billion a year, according to the announcement.
Under the changes, the score for bringing benefits to the local community will rise from 10% to 20% for contracts worth £5 million or more. The Government said the rule will apply whether contracts are delivered by UK or international providers.
Ministers said the approach is intended to direct public spending towards training, work experience and jobs in every postcode. Bidders may receive extra credit for creating local jobs that pay above the legal minimum and treat workers properly, as well as for addressing skills shortages.
The announcement said suppliers will be assessed on commitments to support young people not in education, employment or training, care leavers and people with long-term health conditions. It cited training such as 45 days of work experience as an example of support.
The Government also said other requirements will be scrapped to make bidding easier for smaller firms, scaling businesses, innovative companies and civil society organisations. It said the rules have been simplified and the threshold raised to contracts of more than £1 million, so they do not typically apply to work sought by smaller firms and local social enterprises.
For major contracts, departments will allocate a key performance indicator and make annual progress reports public. First Secretary of State Louise Haigh said taxpayer money should benefit local communities by creating jobs and giving young people skills for the future.