Vital for levelling up that Yorkshire business takes advantage of Government contracts - Edward Winterschladen

Action is needed from Government to address this and deliver on the promises of the levelling up agenda.

Fortunately, change is starting to happen and with it comes a huge opportunity for the local economy and businesses across Yorkshire. This comes in the form of both Government jobs for the region and more opportunities for businesses in the county via Government contracts.

It has long been called for the Civil Service to underline their commitment to levelling up through the relocation of jobs across multiple departments. Way back in 2020, research from the Northern Policy Foundation (NPF) assessed areas across the North of England which would benefit most from relocating government departments and agencies, with York and Leeds named as cities with the potential for civil service departments located in their city.

This was welcomed by central Government with Ministers looking to fix the disconnect between Government and the communities it serves.

What has followed is a slew of announcements from various departments about functions and, most importantly, jobs moving to cities in Yorkshire.

As The Yorkshire Post reported in November, plans are in the works to move 2,250 Cabinet Office jobs to York Central.

The Department for Transport announced a northern hub which would bring around 650 jobs to Leeds and BEIS told of plans for 105 roles in Darlington. These represent significant relocations and can only be seen as positive for Yorkshire as Government jobs and skills are moved to Yorkshire.

It needs to go beyond just moving jobs; it’s about creating an environment in which there are clear pathways for people in Yorkshire to advance their careers in the civil service without feeling like they have to move to London to do that.

The good news for businesses in Yorkshire is that more change has happened and there are opportunities to be seized.

This arrived at the end of 2021 in the form of a little-known piece of Government guidance titled Procurement Policy Note 06/20 which provides government departments with greater ability to factor in ‘social value’ considerations when making contract awards which essentially means that when contracts are being awarded factors such as addressing economic inequality and supporting the Covid-19 recovery across the UK can be taken into account. It pushes Government to use contracts to create advantage beyond simple economics and numbers.

Put simply, this was introduced to incentivise Government departments to engage local suppliers for contracts. Smaller contracts can be awarded directly to local suppliers and for larger projects these can be evaluated on social value and ultimately the local economic impact that would be delivered.

This is a tool that is available to Government bodies both locally and at a national level and should be used to drive the levelling up agenda. What we’re seeing now is contracts being awarded not only on cost but on impact for the local economy and jobs.

But what does this actually mean for businesses in Yorkshire? The introduction of this policy ultimately means nothing if the opportunity is not seized by local businesses. It is vital that business takes advantage of what is now available in terms of Government contracts.

These can be found on Contracts Finder and can be searched by location. Whilst more can always be done by Government on levelling up, in this case the onus is on businesses to put their best foot forward. This change could be a huge boost for Yorkshire businesses.

Many Yorkshire-based businesses are leaders in their fields and offer huge benefits to the public sector anyway, but this change in how contracts can be awarded could make all the difference for those companies who have narrowly missed out in the past or who indeed are thinking about bidding for the first time.

Ultimately, though, the proof of the pudding will be in the eating. While these new rules cover central government, they do not cover the entire public sector. I would encourage all businesses in Yorkshire to consider these new opportunities to not only drive growth for their business but as a way to contribute to the wider levelling up agenda and push Government to continue to rebalance where money is spent.

Harrogate-based Mr Winterschladen is Executive Vice President at procurement consultancy Proxima.