Smarter buying boosts business

A smarter-buying blitz is saving Council Taxpayers £21 million and supporting small businesses in Leicestershire.

The news comes as Leicestershire County Council looks to save some of the £350 million it spends each year on goods, works and services, ranging from domiciliary care to passenger transport. It is on track to save £21 million over four years.

The council’s deputy leader, Nick Rushton, said: “It’s a win-win for taxpayers and small businesses if we can streamline processes and award more work to small firms, as that will support the economy and cut our costs.”

Key measures taken by the council include:

• Boosting value for money by dividing some tenders into smaller lots, to help small firms bid for them

• Drafting simplified templates to help small firms bid for contracts

• Staging bidders conferences, to help voluntary groups bid for adult social care contracts

• Encouraging voluntary groups to form consortia, supported by Voluntary Action Leicestershire, to bid for contracts

• Listing all contracts worth more than £10,000 on the council’s website, so that small firms can look for sub-contracting opportunities with larger bidders

Leicestershire’s work has been used as a national case study by the Local Government Association.

The news has been welcomed by the Leicester and Leicestershire Enterprise Partnership. LLEP’s chairman, Andrew Bacon, said: “Making it easier for local firms to bid for council contracts is a welcome boost for our economy in these tough times. I hope that other public sector bodies follow the county council’s example.”

The council has been working with suppliers to reduce the costs of existing contracts and using electronic auctions, which offer a quick and cost effective way of awarding contracts.

It has beaten its own saving targets, saving £2.2 million over the last year - £1 million more than it had planned for.