EU reforms to procurement could make matters worse: LGA
Planned EU reforms to the current procurement regime risk making matters “even more convoluted and costly”, the Local Government Association has claimed.
Calling for the directives to be re-written, the LGA argued that the proposals would “make it virtually impossible” for councils to give preference to local suppliers.
The Association also warned that they would “force those wishing to pool services with neighbouring local authorities into an unnecessarily lengthy and costly EU-wide tendering process”.
The LGA said it wanted a significant increase in the “ludicrously low” £170,000 procurement threshold above which local government has to open out contracts to the entire EU.
“This is a process which takes several months to complete and creates a significant and costly barrier to entering a money-saving shared service agreement with a neighbouring authority,” it argued.
The Association also called for councils to be given more freedom to award contracts to local suppliers. This would include relaxing rules which demand that procurement contracts to employee organisations or staff mutuals be opened up to providers across Europe.
The LGA claimed that millions of pounds in additional savings would be created through shared service agreements if more appropriate EU reforms were introduced.
Cllr Peter Fleming, Chairman of the LGA’s Improvement Board, said: “Ridiculous EU procurement rules are making it harder for councils to save money by sharing services, and opportunities to promote local jobs and economic growth are being missed. Opaque Internal Market regulations, which fail to distinguish public sector goals from the private sector’s profit motive, are standing in the way of councils delivering better value for money to taxpayers.
“We desperately need the Government to take the fight to Brussels on our behalf and promote a re-write of the rules which are stifling public service innovation and limiting councils’ ability to promote growth in their area.”
Procurement lawyer or professional? Take part in our procurement survey in association with Bevan Brittan.
The survey covers:
- engagement with suppliers pre-procurement
- social factors
- social enterprises
- new models for delivering services
- challenges to procurement exercises
- standstill letters
- SMEs
It should take no more than 10-15 minutes and your answers will not be used to identify you or your organisation.
The results will be published in summary form on Local Government Lawyer in the Autumn, but a copy of the full results will be sent to those that complete the survey.
Your details will not be passed to our sponsors without your consent and will not be passed to any other third parties.
Please click here to access the survey form.
