Scotland's known public sector procurement spend in 2022-23
delivered an estimated 120,000 full-time equivalent jobs and £7.5
billion to Scottish GDP.
The sixth annual report on procurement activity in Scotland
shows that known procurement spend generated an
estimated £13.7 billion in economic activity.
Small or medium size enterprises (SMEs) in Scotland benefited
from more recorded procurement spend compared to the previous
year. 61 pence in every pound spent in Scotland was with SMEs, up
from 55 pence in every pound the year before.
Public Finance Minister, said:
“Public procurement contributes billions to Scotland's economy
and supports thousands of jobs.
“The increase in contracts awarded to SMEs is particularly
welcome. SMEs are critical to the economic lifeblood of Scotland
and can often bring an agility and flexibility that allows them
to introduce innovative solutions faster than larger
organisations.
“Public procurement has a pivotal role to play in delivering a
sustainable future for Scotland and with a spend that is now in
excess of £16 billion a year, we have an opportunity to make a
real difference through using this in even more productive and
innovative ways.”
Background
Under the Procurement Reform (Scotland) Act 2014, public bodies
must consider and act on opportunities to achieve economic,
social and environmental benefits through spending on goods and
services.
Public bodies include local authorities, universities, NHS health
boards and housing associations.
The report also shows:
- Known Scottish public sector procurement spend totalled £16.6
billion in 2022-23, of which £8.9 billion was spent in Scotland
alone.
- Suppliers based in the 60% most deprived areas received
approximately £500 million more known procurement spend on the
previous year, totaling £4.8 billion.
- Third sector organisations received an estimated £1.2 billion
(or 13.3%) of known public procurement spend in Scotland during
the reporting year.
- 107 public bodies reported examples of the ways in which
environmental wellbeing and climate change were addressed through
procurement.
- Some 18,079 suppliers were awarded contracts through the
Public Contracts Scotland platform. Of these suppliers, 77% were
SMEs.
Annual report on
procurement activity in Scotland: An overview of procurement
activity 2022 to 2023 - gov.scot
