Home›Global Markets›Trade & Tariffs›UK to weight government contracts toward jobs and skil…

UK to weight government contracts toward jobs and skills, not green claims

The UK plans to raise the share of contract decisions tied to social value from 10% to 20%, focusing on hiring and training outcomes, with contracts under £1 million exempt.

Reported · Written up by our desk · Trade & Tariffs

The UK government will revise procurement rules for public contracts, shifting the evaluation away from companies proving social and environmental goals and toward demonstrating job creation and support for young people back into work.

According to the Guardian Business, ministers are scrapping the requirement that firms show green and progressive values before being awarded government contracts. Instead, public buyers will double the weight given to whether contracts increase employment, including training, work experience, or filling local skills gaps as part of a push to reduce the number of people not in education, employment or training.

The changes target contract spending of about £90 billion per year. The outlet reports that central government departments currently count social value as 10% of the decision, and under the new measures this will rise to 20%.

The rules also include an exemption for contracts worth less than £1 million, with the government saying the threshold should make it easier for businesses to participate. Louise Haigh, first secretary of state, said every pound of taxpayer money should benefit local communities through good jobs and future skills.

More like this

Sources