Government to prioritise job creation in awarding public contracts under new rules
📰 source: bbc_business · 💼 business
the prime minister will overhaul the uk's £90bn public procurement system, doubling the weight given to job creation in contract bids from 10% to 20% for contracts worth £5m or more. bidders will now have to prove they're creating local jobs above minimum wage, plugging skills gaps, and offering 45-day work experience placements for young people. andy burnham, who runs a similar scheme in greater manchester, says he wants 'growth in every postcode' as the government tackles youth unemployment. ons figures show over a million 16-24 year olds are not in education, employment, or training.
louise haigh, first secretary of state, called the current process a 'tick-box exercise' and said the new rules ensure the £90bn spent each year supports british jobs and skills. the changes apply to both british and international firms. but greenpeace uk's head of politics ami mccarthy warned that protecting the environment and helping young people into work are 'mutually beneficial' and shouldn't come at cost to each other. companies should still be held to environmental targets, she said.
why it matters: government shifts procurement toward job creation, forcing firms bidding on £90bn of contracts to prioritise local employment and training.
source: bbc_business
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