New council rules for spending £217m a year will help 'keep the Stoke pound in Stoke'

New rules for awarding contracts worth over £200 million a year will help 'keep the Stoke pound in Stoke', council leaders say. Cabinet members at Stoke-on-Trent City Council have approved a new procurement code, which sets out how the authority buys goods and services from businesses and other organisations.

The updated code includes specific rules on 'responsible procurement' for the first time, which will give an advantage to companies which offer 'social value' when they bid for contracts. The city council's third party expenditure amounts to around £217 million a year, in addition to contracts awarded for capital schemes.

Council leader Jane Ashworth told the cabinet meeting that the new code would allow the authority to support smaller, local firms to gain a bigger slice of this pot. She also said that the code would 'privilege' firms that paid staff the Real Living Wage - currently £12 an hour, compared to the statutory living wage of £11.44 - as well as those that support the council's Armed Force Covenant by taking a 'positive approach' to helping veterans.

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Ms Ashworth said: "We've built into the code an understanding that there are other sorts of value other than pounds, shillings and pence as it were. For instance, the responsible procurement code talks about the importance of arranging our procurement offers so that they're the right size for local businesses to achieve, and that those local businesses are told well in advance that we expect to be increasing our investment in this area or that area over the next few years, so they have the chance to get ready to bid.

"We are very much aware that there are charities and social enterprises which we want to encourage to take up the opportunity to bid for our contracts. We want to keep the Stoke-on-Trent pound inside Stoke-on-Trent. That's why our procurement strategy is about enhancing the opportunity of local organisations to do well and win those contracts."

"This is about money, but it's also about additional social value. It's about ensuring that taxpayers' money is used to the best benefit of everybody who lives in this city."

Councillor Duncan Walker, cabinet member for adult services, welcomed the new procurement code. He said: "I think this is absolutely fantastic. Not only that we're keeping the Stoke pound in Stoke, but the commitment regarding the Real Living Wage. I think that's absolutely critical."

When a council needs to buy goods or services, it will usually invite bids from third parties before deciding which one is the best. This process involves giving a 'weighting' to various factors, such as price and quality.

The new rules will double the weighting assigned to responsible procurement from five to 10 per cent for contracts worth more than £100,000. Firms would gain 'points' through things such as improving environmental sustainability, promoting ethical sourcing practices or encouraging equality, diversity and inclusion.