LGA slams EU procurement regulations
0A revision of EU procurement regulations could make it more difficult for councils to appoint local suppliers and drive up costs, the LGA warned this week.
The LGA has called for the “ludicrously low” £170,000 threshold above which local government has to open out contracts EU-wide to be raised. The tendering process to include companies across the EU takes months and creates unnecessary delays and cost as well as precluding the simpler use of local contractors. The LGA points out that the rules can also force those wishing to pool services with neighbouring authorities into an unnecessary EU-wide process.
Instead of addressing problems in the system the LGA is worried that potential revisions will make it worse and has asked the UK government to ensure the re-write of the European directives “delivers for British council tax-payers.” EU reform would increase the number of councils able to save money by sharing services with other councils. More than 200 councils currently have these kind of money-saving arrangements in place.
The 49% proportion of local government spend on small to medium sized businesses could also be increased, the LGA believes, if councils could target spending at local business to promote growth.
“Local authorities have the best record on procurement in the public sector,” said Councillor Peter Fleming, chairman of the LGA’s improvement board, “spending nearly half of procurement budgets with small to medium sized businesses and teaming up with each other to get lower prices on everything from office paper to complex IT systems. Many would dearly love to be able to use more of their spending power to boost the local economy too. It is crucial that the new rules, expected to be introduced in a few years, clearly address these issues.”
