New Rules Reshape £90bn of Public Contracts
New rules governing how the government awards contracts will reshape around £90bn of annual public spending, forcing bidders to show they will create jobs and skills. Under the changes, so-called social value will carry a minimum weighting of a fifth in decisions on large central-government contracts. The shift builds on the government’s move to prioritise British jobs over environmental targets.
The reforms hand the state a powerful lever to steer where the benefits of its spending land, tilting contracts towards firms that promise training, apprenticeships and work in deprived areas. Supporters argue it will spread the gains of public money more widely and support the government’s growth ambitions; critics warn it could raise costs, invite gaming of the criteria and sideline the greenest bids. With tens of billions at stake each year, the impact on business could be substantial. Watch how firms adapt and whether the rules deliver the promised jobs.