Manchester boosts its local economy spend

Almost three quarters of the amount Manchester city council spends with suppliers goes to locally-based firms, new figures have revealed.

The figures, which will be presented today (5 March) by the Centre for Local Economic Strategies (CLES) at an event in Manchester show the local authority spent £446 million with its top 300 suppliers during the last financial year of 2016/17.

In addition, the proportion of spend with Manchester-based organisations has increased from 51.5% in 2008/09 to 71.7% in 2016/17.

And the proportion of procurement spent with small and medium-sized businesses was 59.4% in 2016/17.

In addition, the core findings from the 2016/17 social value survey of the top 300 suppliers to Manchester city council, revealed that they created an estimated 68,862 hours of volunteering and community support activities.

The suppliers also created around 705 apprenticeships and an estimated 1,160 jobs in Manchester last year.

CLES has been working with Manchester city council since 2008 to analyse its annual procurement spend and to improve its procurement processes.

Additionally, the local authority and CLES have worked in collaboration with the supply chain to change their behaviour to deliver social and environmental value.

The deputy chief executive of CLES, Matthew Jackson, said: ‘CLES has been pleased to work collaboratively with Manchester City Council over the last 10 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,’ added Mr Jackson.

The chair of the city council’s ethical procurement sub-group, Carl Ollerhead, said: ‘At a time when local government budgets are shrinking, reducing the impact of how we as a council can stimulate the economy, these new figures are really encouraging, and are testament to the collaborative work between Manchester city council and CLES.

‘We are committed to continually enhancing our social value policy to help more of our residents share in the success of the city.’

Last month, New Start reported on how the Labour party is to set up a community wealth-building unit to explore creative approaches to the running of local services and economies.

Building on the Preston Model, which has seen the council and other local ‘anchor’ institutions keep money flowing within the local economy, the unit will bring together a range of advisors.

Speaking on Saturday (3 March) at a conference in Southampton, Labour’s shadow chancellor John McDonnell warned many councils are ‘coming to the end of the line’.

‘There is a crisis in our local and national economies,’ said Mr McDonnell. ‘Yet the Tories are bizarrely saying they will pass up an opportunity this month to act.

‘The chancellor will do anything to look after himself and delay making a decision to help our struggling communities and our economy,’ added the shadow chancellor.

‘That is why he is continued with his failed economic policy of austerity, and letting local councils act like human shields having to carry out his cuts.’