Prioritise new jobs over green targets to win public contracts, firms told
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🗞️ Driving the news: The UK government plans to overhaul its £90 billion public procurement system, requiring companies bidding for government contracts to prioritise job creation and skills development rather than broader green and social targets
• Under the proposed changes, companies will receive greater weighting for creating local employment, training young people and addressing regional skills shortages
🔭 The context: Currently, companies competing for public contracts are assessed partly on their wider social value contributions, including net zero commitments, equality initiatives and community benefits
• The government plans to double the social value weighting for contracts above £5 million from 10% to 20%, but redirect the focus toward employment outcomes
• The reform comes as the UK faces a youth unemployment challenge, with more than one million people aged 16 to 24 not in education, employment or training (NEET)
• Prime Minister Andy Burnham said the goal is to create “growth in every postcode” by using public spending to support local economies
🌍 Why it matters for the planet: The move points out a growing political debate around the balance between climate action and economic priorities
• Public procurement is a powerful lever for sustainability, as governments can influence supply chains, infrastructure projects and corporate behaviour through purchasing decisions.
⏭️ What’s next: The government plans to implement the new procurement rules for both UK and international companies seeking public contracts
• Businesses may need to demonstrate measurable contributions to employment, training and local economic development
💬 One quote: “Protecting the environment and helping young people into work are mutually beneficial and one shouldn’t come at a cost to the other.” — Ami McCarthy, Greenpeace UK
📈 One stat: The UK government spends around £90 billion per year through public contracts affected by the reform.
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