Rotherham Council hopes to spend more money with local firms

A new social value report, which was discussed by the borough council’s overview and scrutiny management board this week, investigates how the council’s spending has been used to maximise benefits for the borough.

It found that the council’s local contract rate is currently 12 per cent – a rise from 11 per cent in 2021/22.

Officers say there are some industries, such as utilities, where a local supplier isn’t available and the council has had to spend elsewhere.

However, the council hopes to increase the number of local suppliers they use, ‘subject to competitive procurement outcomes’.

Several large construction projects such as the Forge Island redevelopment mean that construction-related suppliers are the highest area of local spending for the council, followed by health suppliers.

In 2022/23, 27 per cent of total construction spend went to Rotherham-based suppliers, which is down from 38 per cent in 2021/22.

Work will be undertaken next year to help local suppliers understand the council’s procurement process, in a bid to keep cash within the borough.

In 2022/23, 62 suppliers in the council’s top 300 were Rotherham-based, up from 60 in 2021/22, with 103 located in South Yorkshire.

“The current local contract rate is 12 per cent (up from 11 per cent in 2021/22). It should be noted there are some industries where it is difficult or not feasible to use Rotherham-based suppliers,” adds the report.