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Local spending should use new laws to promote social prosperity – new report urges

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Press release

Embargo date: from 00.01 a.m., Monday 14 October 2024

Local spending should use new laws to promote social prosperity – new report urges

Councils should make better use of their collective annual £72bn spend on goods and services to promote community prosperity, a new report published today by the think-tank Localis has advised.

In a study entitled ‘New Values: local public contracts for networked social prosperity’ Localis calls on councils to make use of the new Procurement Act – which comes into effect next February – to drive social prosperity. This could involve tailoring commercial contracts for neighbourhood services to local economic needs such as by supporting SMEs and opening up training pathways for residents.

Under new Act, which stresses the importance of the ‘most advantageous tender’ to unlock a wider concept of value for money that fosters social prosperity and inclusive growth, local authorities will be encouraged to optimise their buying of goods and services through a balance of insourcing, outsourcing and hybrid models tailored to local needs in a whole place manner.

According to Localis, councils should consider a ‘local service reshoring model’ in which smaller authorities would hand over administrative responsibilities to arm’s-length delivery bodies while delivery is outsourced to local agencies, whether Local Authority Trading Companies (LATCos) or from the private or third sector.

Given the move to greater insourcing and taking account of council capacity constraints, local authorities are further urged to consider banding together to set up or make use of existing delivery vehicles for strategically assessing and controlling public contracts.

Councils are also advised to use dynamic contracting, whereby local contracts are equipped with mechanisms that allow for the periodic review and adjustment of commercial terms to meet local needs.

Key report recommendations for central government include:

  • calls to conduct economic and social impact studies to better direct local strategic capacity;
  • greater clarity on legal definitions and scenarios under the new legislation;
  • supporting a local government capacity building programme for council procurement departments.

Report author and Localis senior researcher, Callin McLinden, said: “With the enactment of the Procurement Act postponed repeatedly, many local authorities have been left in a state of limbo and would be right to wonder what the fuss has been about.

“The Procurement Act is set to reinvigorate an admittedly dense but promising legislative framework for procurement and local service contracts, carving out greater strategic potential for the buying process to deliver socially prosperous and publicly valuable outcomes – whether services are insourced, outsourced, or innovatively hybridised.

“However, whatever the ambitious approach or model taken, a lack of accountability, capacity gaps, and unfamiliarity with overtly complex legislation have stood in the way of and will continue to frustrate any efforts to ‘take back control’ of public services.

“This is why the government and local authorities must be equally mindful and mutually assured in transitioning towards a more strategic and socially prosperous use of public contracts.”

Justin Galliford, CEO of Norse Group, said: “Smart procurement is about more than just contracts—it’s about ensuring best long term value for our communities, creating social value, and ensuring local growth.

“Models like LATCos (Local Authority Trading Company) offer councils the advantages of insourcing, such as greater control over services and employment of staff, while operating in a more commercial environment with expertise.

“By focusing on what really matters, councils can help build a future where economic success also means stronger, healthier communities.”

Jonathan Werran, chief executive, Localis, said: “In opposition, the Labour Party promised, under the aegis of a National Procurement Plan that would mandate social value in public contracts, to strengthen public procurement so as to support local businesses and ensure contracts drive local economic development, sustainable growth and high employment standards.

“Now they are in Government, we can expect to see a strategic shift towards the wholesale integration of environmental, social and employment considerations.

“To deliver this shift at the level of place and guarantee communities and localities benefit fully from the current annual £72bn spend on local goods and services will require robust capacity building and training programmes to give council procurement teams the skills to navigate increased complexity and transparency.”

END

Press enquiries:

Jonathan Werran, chief executive, Localis
(Telephone) 0870 448 1530 / (Mobile) 07967 100328 / (Email) [email protected]

Notes to Editors:

  1. An advance copy of the report is available for download here:

https://www.localis.org.uk/wp-content/uploads/2024/10/Localis-New-Values-Report-AUG24-A5-PRF07.pdf

  1. About Localis

Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever-growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.

https://www.localis.org.uk/

‘X’ @Localis

About Norse Group:

Norse Group delivers the spaces and services communities need to thrive. We combine breadth, expertise, and scale with the insight of a local partner and the values of the public sector – driven by the belief there is always a better way to deliver for the public.

It is our mission to offer an integrated approach to providing public sector services – generating sustainable long-term relationships and returns in a fair and ethical way, for the benefit of our clients, employees, and all other stakeholders.

www.norsegroup.co.uk

‘X’ @NorseGroupLtd

  1. Key report recommendations

Central government

  • Central government should launch a local government capacity building programme to enhance the staffing and training of procurement departments and ensure that the intended aims of recent reforms can be met at the local level.
  • To ensure strategic procurement can be carried out successfully at the local level, there is a need for greater clarity in legal definitions and scenarios around the new regime, particularly in the context of a drive to hybridised and insourced models.
  • Central government should conduct economic and social impact studies on local authorities and their public contracts to assess strategic capacity and resource allocation in relation to upcoming reforms at the local level, with a view towards tailored and sustained central government support where it is needed most.

Local government

  • To drive social prosperity, councils should integrate procurement strategies with wider socio-economic objectives, as defined by local understandings of wellbeing and prosperity.
  • As part of this process, it is important to take advantage of the new reforms to tailor contract design to local economic needs such as the privileging of local SMEs or development of training pathways.
  • When approaching new public contracts, councils should consider a hybrid model – particularly regarding the use of LATCos and arm’s length delivery vehicles to deliver strategic goals across public contracts.
  • Councils should emphasise dynamic contracting, where public contracts are designed with mechanisms that allow for periodic review and adjustment of terms – making use of the new procurement regime to ensure local objectives are being met.
  • In the context of an insourcing drive, given capacity constraints in local government, councils should consider joining together to set up or make use of delivery vehicles for strategic assessment of administrative and managerial control over public service contracts:
  • County, unitary and other regional authorities: consider the possibility of setting up an arm’s length body to take on the administrative and managerial functions for contracts among groups of local authorities.
  • District and constituent authorities: Consider the possibility of reshoring relevant administrative and managerial functions for contracts among groups of local authorities.

General

  • As we end one political cycle and begin another, it is important that momentum is not lost and that central government continues ongoing dialogue and collaboration with local government, combined authorities and other stakeholders to ensure that public contracting for social prosperity continues to be realised across the country.
  • As part of this, both local and central government must adopt non-ideological, evidence-based approaches to procurement strategy, to ensure best local outcomes, maintaining a pragmatic and socially-inclined mindset.

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EU’s Regulatory Shift: A Boon for Small Tech Firms

New EU regulations targeting tech monopolies promise to level the playing field, offering unprecedented opportunities for smaller tech companies to thrive. Explore how these changes could reshape the industry.

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In a decisive move aimed at curbing the dominance of technology giants, the European Union has implemented a suite of new regulations designed to foster competition and innovation within the industry. Announced by the European Commission on May 21, 2026, these measures are part of a broader strategy to dismantle monopolistic practices and empower smaller players in the tech sector. The Financial Times reported that this regulatory shift could herald a new era for startups and small businesses, offering them a unique opportunity to compete on a more level playing field.

For years, the EU has tussled with tech behemoths over issues ranging from data privacy to market monopolies. These latest regulations, however, mark a significant escalation in the EU’s efforts to promote fair competition. By targeting the monopolistic practices that have long stifled smaller competitors, the EU aims to dismantle barriers that have historically protected the interests of large corporations. This shift is timely, as innovation increasingly emerges from smaller tech companies that often lack the resources to challenge established giants.

The current regulatory framework introduces stringent measures that impose limits on data sharing, promote transparency in algorithms, and mandate interoperability between platforms. These measures, as detailed by the European Commission, aim to dismantle the walls that have allowed tech giants to corner markets and stifle competition. Smaller firms, often more agile and innovative, stand to benefit immensely. By ensuring that platforms cannot unfairly prioritize their own services, these regulations open doors for startups to enter markets previously dominated by a few large players.

Market analysts have noted that these changes could lead to a renaissance in tech innovation across Europe. Smaller companies, unburdened by the constraints of battling entrenched incumbents, are likely to experiment with new technologies and business models. For instance, the requirement for interoperability could lead to the development of new collaborative platforms that challenge existing ecosystems. As a result, consumers may see a surge in diverse product offerings tailored to specific needs, driven by smaller companies eager to carve out niche markets.

The response from tech giants has been predictably cautious. While some have expressed willingness to comply, others have raised concerns about the potential for stifling innovation and increasing operational costs. However, proponents of the regulations argue that true innovation thrives in competitive environments. By breaking the hold of tech monopolies, the EU is not only fostering a fairer market but also driving the industry towards a more dynamic and responsive future.

Looking ahead, these regulatory changes could catalyze a shift in the global tech landscape. As smaller companies gain traction and challenge the status quo, the ripple effects may extend beyond Europe, influencing regulatory approaches worldwide. This development promises to reshape the dynamics of the tech industry, offering a glimpse of a future where innovation is driven by diversity and competition, rather than the dominance of a select few.

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AI Revolutionizes Cryptocurrency Trading with Real-Time Analysis

AI algorithms are transforming cryptocurrency trading by offering real-time analysis and unprecedented efficiency. This article explores the technological advancements and their impact on the crypto market.

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Artificial intelligence is rapidly reshaping the cryptocurrency trading landscape, a fact made clear by recent reports from Bloomberg. The integration of AI algorithms into trading strategies is providing unprecedented real-time analysis and efficiency, a development that is attracting significant attention from investors eager to capitalize on the volatile yet lucrative crypto markets.

In May 2026, Bloomberg highlighted how AI technologies are enabling traders to process vast amounts of market data at speeds unattainable by human analysts. This capability allows for the detection of patterns and trends that might otherwise go unnoticed, offering a competitive edge to those who harness these tools. The real-time nature of these analyses means traders can make decisions based on the most current market conditions, enhancing the potential for profitable trades.

The application of AI in cryptocurrency trading is not merely a theoretical concept but a practical reality transforming investment strategies. For instance, hedge funds and institutional investors are increasingly relying on machine learning models to predict price movements and optimize trading algorithms. These models can analyze a myriad of factors, from market sentiment to historical price data, adjusting trading strategies dynamically in response to new information.

AI’s role in enhancing trading efficiency is particularly crucial in the cryptocurrency markets, where volatility is a constant challenge. The ability to swiftly process and react to market changes can mean the difference between a lucrative trade and a significant loss. This agility is driving interest from tech-savvy investors who are keen to leverage innovation for financial gain.

However, the rise of AI in cryptocurrency trading is not without its challenges. Regulators are grappling with the implications of these technologies, as traditional oversight mechanisms struggle to keep pace with rapid technological advancements. There is an ongoing debate about the need for new regulatory frameworks to ensure fair and transparent trading practices.

Despite these challenges, the potential benefits of AI in cryptocurrency trading are substantial. As the technology continues to evolve, it is likely to drive further innovation in the financial sector, offering new opportunities for growth and investment. Investors and firms that can effectively integrate AI into their trading strategies are poised to thrive in this new digital era.

The future of cryptocurrency trading appears increasingly intertwined with AI technology. As more traders adopt these advanced tools, the market dynamics will likely shift, favoring those who can adapt quickly to technological changes. The ongoing integration of AI into cryptocurrency trading not only heralds a new era of financial innovation but also underscores the transformative power of technology in shaping the future of finance.

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The Rise of Green Finance in Europe: Challenges and Limitations

Explore the burgeoning field of green finance in Europe, focusing on the critical challenges and limitations that could shape its future. This article provides a thorough analysis of the barriers to sustainable investment growth and the potential implications for investors.

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As the sun rises over Europe’s financial districts, a new wave of investment strategies is beginning to take shape. Green finance, a term that encapsulates financial investments flowing into sustainable and environmentally friendly projects, is gaining traction across the continent. However, beneath the surface of this promising trend lie significant challenges that could impede its progress.

The current landscape of green finance in Europe is characterized by an increasing number of funds and initiatives aimed at supporting sustainable development. The European Union has been at the forefront, implementing a comprehensive framework that encourages green investments. This includes the EU Green Deal and the Sustainable Finance Disclosure Regulation (SFDR), which aim to direct capital flows towards sustainable economic activities. Despite these efforts, the journey towards a universally green financial system is fraught with obstacles.

One of the primary challenges facing green finance is the lack of standardized definitions and metrics. What exactly constitutes a ‘green’ investment can vary significantly across regions and sectors, leading to confusion and inconsistency. This lack of clarity can result in greenwashing, where investments are marketed as sustainable without meeting rigorous environmental criteria. The absence of a unified taxonomy complicates efforts to assess and compare the sustainability of different financial products.

Moreover, the transition to green finance is hindered by the existing financial infrastructure. Traditional financial systems are deeply entrenched, often prioritizing short-term gains over long-term sustainability. This systemic inertia makes it difficult for green initiatives to gain a foothold. Additionally, many investors are still skeptical about the profitability of sustainable investments, perceiving them as risky or less lucrative compared to conventional options.

Another significant limitation is the uneven distribution of green finance across Europe. While countries like Germany and the Nordic nations have made substantial progress in integrating sustainable practices, others lag behind due to economic and regulatory disparities. This imbalance poses a challenge to achieving a cohesive and effective green finance strategy across the continent.

The role of technology and innovation in overcoming these challenges cannot be overstated. Advancements in fintech, such as blockchain and artificial intelligence, have the potential to enhance transparency and efficiency in green finance. These technologies can help track and verify the environmental impact of investments, thus building trust and credibility in the market.

Despite these hurdles, the future of green finance in Europe holds promising opportunities. As awareness of climate change grows, so does the demand for sustainable financial products. Investors are increasingly recognizing the long-term benefits of aligning their portfolios with environmental goals. Furthermore, regulatory pressures and societal expectations are likely to drive more companies towards sustainable practices, thereby expanding the scope of green finance.

In conclusion, while the rise of green finance in Europe is a step in the right direction, it is not without its challenges. Addressing the issues of standardization, infrastructure, and regional disparities will be crucial in unlocking the full potential of sustainable investments. As Europe navigates these complexities, the outcome will not only shape the future of its financial markets but also its commitment to a sustainable global economy.

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