Sunday 7 September 2008

Business organisation calls for council spending to be local

JUST weeks after Thurrock Council announced it was scrapping local contracts with small firms for the maintenance of its properties and going out to tender with one big firm, the region's small business organisation have spoken of the impact council spending can have on local economies.

Essex Federation of Small Businesses says local councils can give a massive boost to local economies.

FSB Head of Policy Andrew Cave said: "Procurement is an underused tool in sustaining local communities.

“Councils here in Essex are finding that awarding contracts to small businesses in their area or within the county is cost effective, offers quicker turnaround time and greater flexibility while at the same time keeping the carbon footprint low as delivery distances are less “Our survey shows that more than £574 million is spent with local businesses by the councils in Essex during the last financial year – a massive boost to the local economy and as 83p in every £1 spent with a local business goes back in to the local economy it makes good economic sense, good business sense, good environmental sense and it keeps trade local."

Thurrock Council came ninth in a list of 12 local authorities when their spending in local communities was assessed, spending £6,824,587, just 13.8 per cent of its budget within authority boundaries.

Chairman of the Essex Region of the FSB, Bill Pirie, said: “Using the figures supplied by the local councils we were pleased to see that Tendring District Council tops the league with 48.5 per cent of its budget being spent with firms within the council’s boundary closely followed by Essex County Council on 46 per cent and Southend-on-Sea Borough Council with 32 per cent.

“The FSB will continue working with councils as our aim is for 100 per cent of council spending for every council to be with firms in the county – that really will be Keeping Trade Local!

“Sadly of the 16 local authorities in the Essex FSB Region four councils were unable to supply data as their computer systems did not allow searches by postcode

Thurrock Gazette

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