Scottish Government to boost use of "community benefit clauses"

Proposed changes to public procurement will lead to a substantial expansion in the use of ‘community-benefit clauses’ and help Scottish businesses bid for public contracts, the Scottish Government has claimed.

It said such clauses would help promote training, apprenticeships and opportunities for disabled people and the long-term unemployed.

The Scottish Government said its Procurement Reform Bill would also benefit businesses “by making it easier to access public sector contracts and by ensuring that public sector procedures and practices are transparent and proportionate and readily accessible, especially for SMEs and the third sector”.

The Bill is to include enabling powers to make regulations concerning how Scottish public bodies assess the suitability of companies to bid for public contracts, “which will help to address improper and unacceptable practices like blacklisting”.

The Scottish Government added that other statutory guidance would encourage good employment practices by allowing a company’s approach to workforce-related matters to be considered when assessing the suitability of a company to bid for public sector contracts.

“This will mean that purchasers can consider, where relevant to the performance of the contract, whether matters such as inappropriate use of zero hours contracts or levels of remuneration may affect the quality of service that a company is likely to provide,” it suggested.

Deputy First Minister Nicola Sturgeon said: “Changes to public procurement rules will ensure Scotland retains its place as a world leader in public procurement reform, promoting an approach that is both business friendly and socially responsible.

“This Bill will provide a national legislative framework for sustainable public procurement, ensuring that we maximise the economic benefit brought to Scotland from effective and efficient public procurement spend.”

Sturgeon added: “This Bill will also make it easier for the public sector to buy goods and services, helping to boost our economy and get people into work.

“Scotland has one of highest levels of public procurement spend on SMEs in the EU. The Bill will build on and secure that success and continue to make it easier for SMEs to find and compete for public sector contracts.”