Prime Minister Andy Burnham has announced a significant restructuring of the UK's £90 billion public procurement system, signaling a shift that prioritizes employment opportunities over previous environmental and social criteria. The government aims to address rising youth unemployment by requiring companies bidding for public contracts to demonstrate their commitment to hiring local workers and filling regional skills gaps.
Under the revised framework, the weighting for social value in contracts valued at £5 million or more will increase from 10% to 20%. While this category previously encompassed a broader range of goals—including net-zero initiatives, diversity, and post-pandemic recovery—the updated criteria will focus specifically on job creation. Bidders will receive preferential consideration for offering roles that pay above the minimum wage, providing vocational training, and establishing 45-day work experience placements for young people.
First Secretary of State Louise Haigh described the existing procurement process as a "tick-box exercise," emphasizing that taxpayer funds should be utilized to foster local economic growth. Cabinet Office Minister Mark Ferguson added that firms benefiting from government spending hold a responsibility to reinvest in their communities by creating opportunities for the youth.
The initiative draws on strategies previously employed by Burnham during his tenure as Mayor of Greater Manchester. According to Office for National Statistics data, there are currently over one million individuals aged 16 to 24 who are not in education, employment, or training.
The policy shift has drawn criticism from environmental advocates. Ami McCarthy, head of politics at Greenpeace UK, argued that environmental protection and youth employment should not be treated as competing interests, stating that companies should be held accountable for both environmental targets and the welfare of young workers.
Source: BBC News
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