FSB urges more councils to buy local and give Scotland £140m boost

Scottish councils should buy local more often to help deliver a £140 million business boost, according to a campaign group.

Launching its manifesto for May’s local authority elections, the Federation of Small Businesses (FSB) has highlighted that councils have a combined procurement budget of around £7 billion.

However, the average Scottish local authority spends less than a third of its budget with businesses from within its boundaries, the lobby group noted.

The FSB said that if all councils gave local firms two additional percentage points of their total procurement budgets per year, this would deliver a £140m annual boost to local economies across the country.

Andrew McRae, FSB’s Scotland policy chair.

The group’s Scotland policy chair, Andrew McRae, said: “Businesses and councils across Scotland have a shared interest in local economic recovery.

“Working together, they can be huge drivers of change in their communities. That’s why we’re urging parties and candidates at this year’s elections to get behind the great firms on their doorsteps.

“Modest procurement spending targets could deliver massive compound benefits. With councils facing their own budget pressures, this move would squeeze additional value from taxpayers’ cash.”

The manifesto also urges councils to support new businesses, with a focus on boosting new-starts led by “traditionally under-represented groups”, including women and migrants. This new help could be delivered through the council-run Business Gateway service, it argues.

McRae added: “If we’re serious about rebuilding our local business community, then we need to make sure that every budding entrepreneur is given the best chance to succeed. That’s why we’re urging councils to continue to fund support for new-start businesses.”

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