As part of Lewisham’s Fairness Review, which I have been involved in as a member of the Public Accounts Select Committee, we’re trying to help more local businesses to successfully bid for contracts with the council. Currently only 14% of council suppliers are based in Lewisham.
Lewisham, like most local authorities, is under huge pressure to make drastic cuts of up to 30% of our budget. The Fairness Review recommended that the council should work closer with local businesses, rather than huge corporations, to meet this challenge. The Fairness Review has even led to a change in Lewisham Council’s constitution so that for all contracts under £40,000 it will be mandatory for the council to get a quote from a local firms. Lewisham will be adding all tenders to the “Supply4London” portal and publishing all payments to suppliers worth over £250 to show the opportunities available.
This builds on the work of the New Economics Foundation who have demonstrated that buying local is worth 400% more to local authorities due to the “local multiplier”. The multiplier means: –
· that every £1 spent with a local supplier is worth £1.76 to the local economy, and only 36 pence if it is spent out of the area. That makes £1 spent locally worth almost 400 per cent more.
This work by Lewisham Council will drive more money into the local economy with the aim of cutting local unemployment and giving home-grown businesses more hope for the future.