• Road, rail, hospital and school building contracts to create high quality British jobs and boost skills in local communities as part of Plan for Change.
• Plans under consultation will mean companies will need to show they can create opportunity and growth locally when bidding for public sector contracts
• Overhaul will maximise benefits for working people as government prepares to unveil plans for billions of pounds of investment in Infrastructure Strategy and Industrial Strategy.

Creating high quality British jobs and boosting skills in local communities will be key requirements for companies to win contracts for major infrastructure projects, under proposals to be consulted on. 

Cabinet Office minister Pat McFadden has ordered the overhaul of public procurement rules to maximise the benefit to working people, as this government invests in Britain’s future following the Spending Review with billions for new roads, railway lines, hospitals and schools.

The first job of this Government was to stabilise the British economy and the public finances. Now we move into a new chapter to deliver on the promise of change.

The upcoming Infrastructure Strategy and Industrial Strategy will detail plans for billions of pounds of investment in projects across the United Kingdom that will create jobs, prosperity and put more money in people’s pockets.

The Chancellor of the Duchy of Lancaster, Pat McFadden, said:

Whether it’s building roads, railways or schools, we want to open up opportunities on major infrastructure projects for firms that boost British jobs and skills.

The new rules will deliver on our Plan for Change by rewarding companies that put money in working people’s pockets as we invest in the country’s future.

Under the changes proposed in the Cabinet Office consultation, public bodies would have to give more weight to firms that can show they will boost British jobs and skills in their bids for contracts.

The change will apply to major government projects including transport investments, as well as school and hospital building schemes.

The latest proposals will build on progress delivered in February, when the Government set out an expectation for public bodies to provide wider social and economic value when awarding £385billion worth of public contracts every year. The changes would make this a mandatory requirement in all major new contracts.

These new proposed changes, that also form a central part of the upcoming Industrial Strategy, will mean public sector organisations also seeking to launch major infrastructure projects will reward suppliers that can show they will bring benefits targeted to the specific needs of a community.

For example, when assessing how a company could deliver a road building project, a public body would need to consider how the firm would offer benefits such as apprenticeships, T-level industry placements, opportunities for care leavers, or helping people get into work and stay in work in that area. 

In the past companies have made pledges when they are bidding for a contract but don’t always follow through. Under these plans, we will make sure that companies deliver their promises on skills, jobs and local opportunities.

A new simpler approach to social value will be developed that can provide a simpler set of criteria for public bodies to use, with clearer rules on monitoring how suppliers are delivering on contract requirements, such as new jobs and training opportunities created.