Report shows new ways to interpret EU rules to boost local growth

Despite EU regulations stating how councils should buy goods and services, local authorities are finding ways to use these rules to bring real financial benefits to local areas, according to a new report.

The Local Government Association and Local Partnerships have jointly published case studies of councils who have managed to utilise the procurement rules to their advantage, maximising the benefit from every taxpayer pound spent.

This comes as councils face budget cuts of around 28 per cent in the current spending round, compared to an average of just eight per cent across Whitehall departments.

The report, Buying into Communities, illustrates how when buying low value goods and services, there is room for manoeuvre which councils can use to their advantage. Even with larger contracts, there are fewer constraints than are widely believed.

Given the tough financial position councils face, the LGA is urging them to use the report as a guide to navigate through the procurement process and bring genuine benefit for local taxpayers. Whilst in the longer term, EU procurement is in need of radical reform, these innovative methods are the most effective in the current situation.

The main approaches to utilise EU rules around buying goods and services were:
•Councils can use EU guidance, known as ‘European Code of Best Practices' as a way of encouraging bids from small and local firms, thus bringing savings to the taxpayer.
•Bidders can have their previous record checked by councils through a survey early in the bidding process. Known as a ‘pre-qualification questionnaire', this allows the track record and competence of prospective unknown bidders to be checked.
•Councils can decide which bid to accept based around the knock on benefits to the local economy. This can be achieved following a European Court judgment, which allows these criteria to be written into contracts.

Councillor Sir Merrick Cockell, chairman of the LGA, said: "These approaches should be adopted by councils across the country to work through the complex EU rules on buying goods and services.

"When councils buy and sell goods, they should be able to consider the economic benefit to the local area and involve local firms where possible.

"These approaches can bring financial benefits to local areas, ensuring that every pound of taxpayer's money is put to good use.

"Local authorities are the most trusted and efficient part of the public sector and these examples confirm the innovative approaches they are using to provide value for money to the taxpayer."