Scotland’s Third Sector Making Major In-roads to Public Sector Procurement
There is an increasing recognition that councils can use their substantial purchasing power to achieve even greater impacts on the local economy, communities and the environment. Last year for instance Scotland’s local authorities procured over £5.4bn of supplies, works and services (accounting for more than one-quarter of their entire expenditure).
This study published by Ready for Business gathered evidence relating to procurement spend on the third sector by a sample of five of Scotland’s 32 local authorities. This was a major piece of research that included the analysis of council records relating to over 20,000 individual suppliers (including 2,217 third sector suppliers) that accounted for procurement spending of over £1bn.
The evidence shows that the third sector is now a major supplier of goods and services to Scotland’s local authorities. Based on the evidence from selected councils, the research suggests that the third sector accounts for around £1 in every £5 of council procurement spend and one in every 10 council suppliers. It shows particular market penetration and scale on the part of the third sector in providing social care services.
See report here