South Tyneside Council: 'Half of spending goes to local businesses'

Over half of South Tyneside Council spending is said to be with local business.

New figures show that, since the introduction of ‘Supply South Tyneside’, there has been an increase in the amount of money the council spends with local businesses by 21 per cent.

Aiming to support local businesses and protect local jobs, South Tyneside Council launched ‘Supply South Tyneside’ in 2011, helping them to identify, bid for, and win public sector contracts.

Cllr Iain Malcolm, leader of South Tyneside Council, said: “The ‘Supply South Tyneside’ scheme demonstrates our total commitment to the ongoing economic prosperity of the Borough.

“It represents positive and direct action to ensure that buying local is not just common sense but makes real good business sense.”

He continued: “As a council we are committed to doing everything we can to stimulate the local economy. We spend a significant amount of money on commissioned supplies, services and works provided by external organisations.

“They help us to deliver essential services from social care to housing repair - we must ensure that not only do we get value for money for our tax payers but that the money we spend reaps an economic benefit to our communities.”

The council updated its internal procurement rules to maximise the opportunity for local suppliers to win council business and in turn support local economic regeneration.

Latest figures show that in 2018/19 South Tyneside Council spent over £207.5m on goods and services and of this almost £115m (55.33 per cent) was spent locally.

Managing director, Dave Thompson, added: “The council contract is incredibly important to us as it brings much-needed volume through the business. I think we would have definitely gone under without it.

“At the very least, we would have had to lose three of four employees from the business and we may well have just decided to give up as the economic climate is so challenging.”

When Supply South Tyneside was established, the council set a target of 50 per cent to be spent locally.

With local spending now at 55.33 per cent, that target has been surpassed but the council is determined to grow this figure even further, to expand the South Tyneside businesses community.

Since 2010, the council has spent £1.7bn - £826m was spent with South Tyneside businesses and £1.2bn with Tyne and Wear businesses.