By Elgan Hearn, Local Democracy Reporter
There are signs that the County Council’s ‘Powys Pound’ project is starting to reap dividends for local companies, but Powys has been urged to do more as 70% of contract spending still leaves the county.
Figures released by our regional authority show that over the past three years, the level of spending by Powys County Council with firms in the county has gone up by 4%, from 26% to 30%.
This rise equates to just over £13 million more being pumped into the county’s economy, but Plaid Cymru group leader, Councillor Elwyn Vaughan, is calling for the county council to be more ambitious in spending local.
In recent weeks the council has started a #SupportLocalPowys campaign to get people shopping in their nearest high street and Cllr Vaughan said the council should lead by example.
“If it’s important for the residents of Powys to spend locally, it’s also important for the council to do likewise,” he said. “What’s good enough for the goose is good enough for the gander.”
He has urged the council to aim for 40% procurement from Powys firms, and 75% from Welsh companies.
Responding to Cllr Vaughan’s ‘question at anytime’, Finance Portfolio holder, Councillor Aled Davies, said: “These figures show a real positive impact of the Powys Pound vision with an additional £13m of council expenditure being spent in Powys.
“However, there are anomalies in the way these figures are calculated and collected and this will be addressed this financial year.”
He explained that companies who employ Powys people and use local suppliers may not be counted in the figures – because their company headquarters is out of the county.
“The current methodology therefore does not fully measure the impact of the Council’s spend on the local economy,” he explained.
A survey recently claimed that every £1 spent by the council is worth £6 for the economy.
Spending within Powys
2019/20 – £62, 246,122 – 30%
2018/19- £58,737,991 – 28%
2017/18 – £49,185,297 – 26%
Spending in Wales
2019/20 – £117,788,972 – 56%
2018/19 – £108,477,259 – 52%
2017/18 – £90,368,846 – 48%