At the heart of area’s econ­omy

Rutherglen Reformer - - Cah For Kids -

South La­nark­shire’s new coun­cil­lors have been urged to put small busi­ness at the heart of their eco­nomic strat­egy and in­crease spend­ing with lo­cal small and medium-sized en­ter­prises (SMEs).

The Fed­er­a­tion of Small Busi­nesses (FSB) is writ­ing to the new coun­cil lead­ers to im­prove on the 12 per cent of its pro­cure­ment spend with lo­cal small firms.

Sta­tis­tics col­lated by the Im­prove­ment Ser­vice – the na­tional or­gan­i­sa­tion tasked with im­prov­ing lo­cal govern­ment – show that the av­er­age Scot­tish coun­cil spent 19.7 per cent of their pro­cure­ment bud­get with smaller firms in their area in 2015/16.

South La­nark­shire is among the bot­tom five coun­cils for pro­cure­ment spend with SMEs at 12 per cent.

Tony Hig­gins, chair of FSB in La­nark­shire, said: “While an­other forth­com­ing elec­tion may be grab­bing head­lines, we know just how im­por­tant lo­cal ad­min­is­tra­tions are to the lo­cal com­mu­ni­ties and economies in which our mem­bers trade.

“If the coun­cil was to in­crease spend­ing with smaller, lo­cal firms by two per cent per year, it would gen­er­ate an ex­tra £3 mil­lion per an­num for the lo­cal econ­omy.

“Re­search shows that ev­ery pound spent with a small lo­cal busi­ness gen­er­ates an ad­di­tional 63p of spend in the lo­cal econ­omy. With a large firm, and es­pe­cially one from out­side of the lo­cal area, that same pound only gen­er­ates an ad­di­tional 40p of ben­e­fit.

“It’s clear that the cheap­est op­tion might not deliver the great­est ben­e­fit to the lo­cal econ­omy.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.