04 March 2005
A new code of practice will require local authorities to minimise tender costs for contract bidders and settle invoices promptly so small local firms can compete for their business.
The code, published by the Office of the Deputy Prime Minister on March 1, is intended to tackle long-standing complaints that large companies have unfair advantages when bidding for council contracts. Authorities spend £40bn annually with external suppliers.
All authorities are being asked to sign the Small business friendly concordat. Local government minister Phil Hope said it underpinned the 2.5% annual efficiency target that all councils have to meet under Sir Peter Gershon's review. Much of this is expected to come from more effective procurement.
'We want all councils to recognise the contribution that small and medium enterprises can provide in delivering high-quality public services. In particular, they can often respond quickly and flexibly to customer needs, providing innovation, ideas and improved service,' Hope said.
PFmar2005
