Government contracts to require job creation instead of green targets under new rules

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Government contracts to require job creation instead of green targets under new rules

The Guardian · 12 hours ago

Ministers are overhauling government procurement rules so that companies bidding for public contracts must demonstrate they will create jobs and help young people into work, rather than proving their green and social credentials. First secretary of state Louise Haigh said the change would stop procurement being a "tick-box exercise" and would help small businesses that currently struggle to compete with larger firms adept at meeting existing social value criteria.

Government contracts account for roughly £90bn of public spending annually, and the "social value" weighting in central government procurement decisions will double from 10% to 20%. Rather than assessing broader social and environmental benefits, buyers will instead prioritise firms offering above-minimum-wage local jobs, training and work experience, or that help fill local skills gaps; contracts under £1m will be exempt to ease the burden on smaller suppliers. Environmental groups including Greenpeace UK, Friends of the Earth and Green Alliance criticised the move, arguing that job creation and environmental protection should not be treated as competing priorities.

  • Green and social criteria for £90bn UK contracts replaced by jobs requirements
  • Social value weighting doubles to 20%, focused on youth employment
  • Green groups say environment and jobs shouldn't be a trade-off

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