Place Business at the Heart of Local Growth

23rd March 2015

As we move towards more devolved government across the UK, local decisions on housing and even taxation have the potential to radically enhance the business environment.

Decisions on local growth are best taken when companies and councils decide what arrangements work best for their areas, and deliver these accordingly. Local business must be at the heart of local decision-making on economic development if areas across the UK are to see growth and jobs. To place business at the heart of local growth, the UK and devolved governments must: Guarantee a Business Ratepayers' Vote on local economic strategy, including a vote on any proposed changes to local business taxation ensuring that plans for an area's future have the support and input of the whole of the business community. Create a truly integrated and single market in public sector procurement by mandating all public-sector organisations to follow a single set of principles when buying goods and services and eliminating duplication in information requirements on bidders. Increase SME participation in procurement by making it easier for consortia to compete for large public sector contracts removing the substantial hurdles small businesses face when coming together to compete with larger providers. Compel a shift in local public sector procurement toward adding economic value to the area making government procurement play a larger role in promoting business and employment at a local level. Enforce mandatory engagement standards for local government and agencies on public procurement ensuring procurement bodies frequently and meaningfully engage local business communities on upcoming opportunities. If these proposals are delivered: Local Authorities would be held democratically accountable to businesses for increasing their costs, ensuring, as with residential Council Tax, that business input taxes fall in real terms over time. Local business communities would have more confidence in, and feel greater ownership of, plans for local development; supporting long-term business investment and jobs. Public sector procurement would make a greater contribution to economic growth and regeneration by supporting investment in small and growing companies and local jobs.