Scarborough and Whitby MP Welcomes Plan for Firms to Prioritise Job Creation Over Green Targets to Win Public Contracts

A Yorkshire Coast MP and the GMB Union have welcomed new government procurement rules that prioritise job creation over environmental targets, though green groups warn the shift should not come at the expense of nature.

Scarborough and Whitby's MP and a trade union have welcomed Government plans to prioritise job creation over green targets when companies bid for public contracts.

The Government’s decision to strengthen support for British jobs, apprenticeships, and local economies by giving greater weight to the benefits businesses deliver to communities when bidding for public contracts has been welcomed by Alison Hume, the MP for Scarborough and Whitby.

The GMB Union also described the Government’s new public procurement rules, announced on Wednesday, August 5, as the “right approach”.

As part of the overhaul of public procurement rules, companies bidding for public contracts will be told to prioritise job creation over green and social targets.

From next year, businesses will be assessed on their commitment to creating high-quality employment, tackling local skills shortages and supporting young people into apprenticeships, work placements and training opportunities.

Ms Hume, who represents Scarborough and Whitby, said:

“This is a hugely positive step that puts local communities, British jobs and young people’s futures at the heart of public spending.

“I’ve always maintained that public procurement should help develop skills, support apprenticeships and create good-quality jobs in the communities that need them most.

“This is the kind of ambitious step that will help drive growth in every postcode and ensure local people feel the benefits of economic growth.”

However, the plans have been met with criticism from green groups which have said that getting young people into employment should not come at the expense of the environment.

Greenpeace UK’s head of politics, Ami McCarthy, said:

“Protecting the environment and helping young people into good work are mutually beneficial and one shouldn’t come at a cost to the other.”

She added:

“Companies should be held to account with environmental targets to help achieve a better future without leaving young workers behind.”

Friends of the Earth’s head of campaigns, Rosie Downes, said:

“Encouraging companies to create good local jobs is crucial, but it shouldn’t be an either/or with efforts to safeguard our environment.

“Communities are already paying the price of environmental inaction, with the UK on course for record levels of heat-related deaths this summer and our natural world in sharp decline.”

Ms Hume, the MP for Scarborough and Whitby, said that the reforms would make it easier for smaller businesses to compete for contracts “by cutting unnecessary bureaucracy and reducing burdensome requirements that often favour larger organisations”.

The threshold for some procurement requirements will be raised to contracts worth more than £1 million, meaning “smaller businesses and local social enterprises will be better able to showcase their innovation and community impact without excessive red tape”.

Charlotte Brumpton-Childs, GMB National Secretary, said:

“Using public money to create good jobs, apprenticeships and skills in our communities is the right approach.

“Taxpayers expect government contracts to deliver real benefits for working people and UK jobs, not just profits for suppliers.

“These changes have the potential to support local employment, help young people into quality work and strengthen skills across the country.

“The focus must now be on ensuring these commitments are meaningful, properly monitored and lead to decent, unionised jobs that workers can build their futures on.”

Public sector procurement spending rose from £288.7 billion in 2019/20 to £394.8 billion in 2024/25.

Under the new rules, the weighting given to delivering benefits for local communities will double from 10 per cent to 20 per cent on public contracts worth £5 million or more.

Companies bidding for major contracts will also be able to earn additional credit for creating local jobs that pay above the legal minimum, treating workers fairly and helping to address local skills gaps through initiatives such as work experience programmes.

Suppliers will be expected to support groups including young people not in education, employment or training, care leavers and people with long-term health conditions.

The new rules will apply to central government procurements, with implementation taking effect from January next year.