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

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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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How AI is Transforming Small Businesses: Success Stories

This article explores the transformative impact of AI on small enterprises, highlighting specific case studies of businesses that have successfully integrated AI technologies to enhance efficiency and competitiveness.

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In September 2026, the Financial Times reported a significant surge in the adoption of AI technologies by small enterprises, driven by the promise of enhanced efficiency and reduced operational costs. Among the many businesses venturing into this digital frontier, a few stand out as exemplary cases, demonstrating the transformative power of AI when strategically implemented.

Take, for instance, GreenLeaf Grocers, a small organic food retailer based in Brighton. Faced with the challenges of scaling operations and managing inventory efficiently, GreenLeaf turned to AI-driven inventory management systems. By analyzing customer purchasing patterns and forecasting demand, the system enabled the grocer to optimize stock levels, reducing waste by 30% within the first year. The owner, Sarah Jenkins, noted, “AI has not only streamlined our operations but has also allowed us to focus more on customer service and community engagement.” This case underscores the potential of AI to reshape retail operations, offering insights into customer behavior that were previously inaccessible.

Another compelling story is that of TechFixers, a family-run electronics repair shop in Manchester. Confronted with increasing competition and the need to differentiate their services, the owners implemented an AI-powered diagnostic tool. This technology rapidly identifies device issues, providing technicians with precise solutions. As a result, TechFixers reduced average repair times by 40%, significantly boosting customer satisfaction and expanding their clientele. The owner, Mark Thompson, attributes their competitive edge to AI, stating, “Integrating AI into our diagnostic process has been a game-changer, allowing us to offer quicker, more reliable repairs.”

In the realm of financial services, FinServe, a small accounting firm in London, illustrates the impact of AI on service delivery. By employing AI-based analytics tools, FinServe offers clients real-time financial insights and predictive forecasting. This capability has attracted a new segment of tech-savvy clients seeking proactive financial management. The firm’s director, Lucy Patel, emphasized the strategic advantage gained, “AI has empowered us to provide a level of service that was previously the domain of larger firms. We’re now able to deliver insights and strategic advice that truly add value for our clients.”

These cases highlight not only the successful application of AI in various industries but also the diverse ways in which small enterprises can leverage technology to overcome specific challenges. While the potential benefits of AI are substantial, the journey is not without its hurdles. Businesses must navigate the complexities of data integration, system compatibility, and the initial investment costs. However, for those willing to embrace the change, the rewards can be substantial.

As AI technology continues to evolve, its role in small business operations is likely to expand, offering new opportunities for innovation and growth. The experiences of GreenLeaf Grocers, TechFixers, and FinServe serve as a testament to the transformative power of AI, providing a roadmap for other small enterprises eager to harness this technology.

Looking ahead, the integration of AI into small business operations is set to become even more pervasive. As technology advances and becomes more accessible, businesses of all sizes will find new ways to leverage AI for competitive advantage, creating a dynamic and constantly evolving landscape.

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EU Cryptocurrency Regulations: A New Era for Market Transparency and Investor Confidence

The European Union’s new cryptocurrency regulations promise to enhance market transparency and bolster investor confidence, potentially setting a global standard for regulatory practices.

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In September 2026, the European Union unveiled a comprehensive regulatory framework for cryptocurrencies, marking a pivotal moment in the evolution of digital finance. These new regulations are designed to foster market transparency and enhance investor confidence, setting a precedent that could influence global cryptocurrency policies. The framework, announced by the European Commission, aims to address the volatility and unpredictability that have long plagued the cryptocurrency markets. By implementing stringent disclosure requirements and robust consumer protection measures, the EU seeks to create a safer and more stable environment for both seasoned investors and new entrants.

At the heart of the new regulations are provisions that require cryptocurrency exchanges and wallet providers to adhere to strict transparency standards. This includes mandatory reporting of transaction data and enhanced identity verification processes, which aim to curb illegal activities such as money laundering and fraud. According to the European Commissioner for Financial Services, Mairead McGuinness, these measures will not only protect investors but also bolster the legitimacy of the cryptocurrency market as a whole.

The impact on the market has been immediate and largely positive. Following the announcement, several major cryptocurrencies experienced a surge in value, reflecting increased confidence in the regulated environment. Industry leaders, including Binance CEO Changpeng Zhao, have publicly supported the EU’s approach, highlighting its potential to attract institutional investors who have been hesitant to engage with unregulated markets.

Moreover, the EU’s proactive stance on regulation is likely to influence other regions to adopt similar frameworks. As the global financial community grapples with the challenges and opportunities presented by digital currencies, the EU’s model offers a blueprint for balancing innovation with security. Experts suggest that this could lead to a harmonized set of international standards, facilitating cross-border cryptocurrency transactions and fostering global economic integration.

Critics, however, caution against over-regulation stifling innovation within the cryptocurrency space. Yet, proponents argue that a well-regulated market can actually spur technological advancement by providing clear guidelines within which innovation can thrive. By demystifying the legal landscape, the EU’s regulations could encourage more startups to develop blockchain-based solutions under a stable and predictable legal framework.

Looking ahead, the EU’s regulatory framework is poised to redefine the cryptocurrency landscape, with potential ripple effects across the globe. As other jurisdictions observe the EU’s progress, they may be inspired to implement similar measures, ultimately contributing to a more transparent and secure global financial system. In this new era, the balance between regulation and innovation will be key to unlocking the full potential of cryptocurrencies.

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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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