Local companies missing out on big contracts

New figures uncovered by Montgomeryshire Assembly Member, Russell George, reveal that Mid Wales firms are missing out on millions of pounds a year in public sector procurement contracts.

In 2015/16 Local Authorities in Wales spent over £3 billion on goods, services, social care and construction projects. In addition, the Welsh Government spent over £670 million in the same areas.

However, official figures reveal that Welsh firms are missing out on hundreds of millions of procurement spend each year.

Commenting on the figures, summarised below, Mr George said he was concerned by the proportion of contracts being won by Welsh SMEs.

“The Welsh Government’s procurement strategy appears to be failing Welsh firms, and that impact is being keenly felt within local supply chains,” he said.

“Despite substantial sums being invested by Welsh Government to improve procurement outcomes, Mid Wales firms are still missing out on millions of pounds at both a Welsh Government and local authority level.

“We need to see a meaningful uplift when the next figures are published.

“SMEs are the lifeblood of the Welsh economy, and they are being failed by the Welsh Government.”

Key Stats:

Less than 50% of all local authority spending on goods and services won by Welsh firms (£750,569,905);
Almost 40% (£325,638,421) of local authority spend on construction projects was won by non-Welsh firms;

Only 52% of Welsh Government spend on goods & services went to Welsh-based firms, with £197,239,813 leaking out of the Welsh economy;

Just 1.5% of the Welsh Government’s spend on social care (£1.4 million) went to Welsh firms;

Of all Welsh Government spend on construction projects, just 23% was awarded to companies based in Wales;

Of the six largest capital contracts awarded by Welsh Government in 2015/16, only three were awarded to Welsh firms.