Public sector procurement can become the driving force behind successful devolution in England, writes Clive Feeney, CEO of LHC Procurement Group (LHCPG)
The UK government’s Power and Partnership: Foundations for Growth English Devolution White Paper sets out a vision for greater local decision-making, economic empowerment and investment in regional infrastructure.
By transferring power to regional authorities and metro mayors, the aim is to create more responsive governance structures that drive economic growth, tackle inequalities and improve local services.
For public sector procurement, this shift represents both an opportunity and a challenge.
As local authorities consolidate into larger, more strategic bodies, procurement strategies will need to adapt to ensure efficiency, local economic impact and social value remain central to decision-making.
This places even more importance on stronger collaboration, early supplier engagement and strategies that prioritise meaningful benefits.
The white paper is underpinned by three themes – innovation, integration and accountability – and public sector frameworks can be used as a mechanism for each of them.
The role of procurement in local growth
With new powers over housing, infrastructure and transport, metro mayors and regional authorities will have greater control over investment decisions.
But effective procurement will be essential in making sure public funds stay within local communities, support local businesses and drive sustainable growth.
Frameworks should be structured to prioritise regional impact by engaging with local supply chains, ensuring SMEs and regional contractors have fair access to public contracts.
Frameworks should be customised depending on the needs of each region, reflecting local workforce availability, supply chain resilience and economic priorities.
What’s more, social value requirements that align with local authority goals should be embedded from the beginning. Per the new Procurement Act, this is now a legal requirement.
Ensuring communities get a stronger voice in procurement
Historically, smaller district councils have provided direct engagement with local residents, ensuring that procurement decisions reflect specific community needs.
This is where procurement bodies play a crucial role. By embedding early engagement into procurement strategies, they can help to ensure that local people and stakeholders influence key decisions from the start.
This means frameworks get designed with regional priorities in mind, rather than being one-size-fits-all, with procurement strategies actively aligned with long-term community benefits.
For example, in Scotland and Wales, where devolution has progressed further, LHCPG has successfully delivered projects that combine procurement efficiency with strong local engagement.
Such experiences can provide a blueprint for how English local authorities can make the most of devolution.
Social value is key
By granting local authorities greater control over services and resources, the white paper envisions a system where procurement and public spending decisions are closely aligned with community interests and priorities, thereby enhancing social value.
This approach seeks to foster economic growth, improve public services and strengthen local accountability, ensuring that the benefits of devolution are felt directly by residents across England.
While the Procurement Act enforces social value, it doesn’t guarantee meaningful change; it is merely a push in the right direction.
Genuine social value not only rests on policy and legislation but also the sector’s ability to pursue meaningful goals given constrained finances/resources.
While taking on greater responsibility in this area, local authorities can lean on the expertise of framework providers with established frameworks offering a ready made solution to meet these ambitions.
The Gold Standard blueprint
As local authorities scale up their procurement operations under devolution, there is a growing need for structured, transparent and high-quality procurement processes. This is why the Gold Standard procurement approach is so critical.
The Constructing the Gold Standard Verification Scheme – endorsed by the UK government and rooted in the Construction Playbook recommendations – represents the highest level of quality, transparency and value-driven decision-making in public sector purchasing.
It ensures that procurement processes are rigorous, fair and accountable, delivering long-term benefits rather than just short term cost savings.
The scheme independently evaluates public sector framework providers on a wide range of criteria, from planning and compliance to risk reduction and sustainable outcomes.
There are 24 rigorous recommendations set by the Gold Standard and I’m proud that last year, LHCPG became one of only six framework providers to achieve the verification – and the only one to have it for all frameworks across all regions.
As devolution progresses, maintaining Gold Standard procurement principles will be essential in ensuring that regional investment is spent wisely, equitably and for the benefit of local communities.
A decade of regional procurement expertise
Devolution may feel like a new approach for many local authorities but for LHCPG, regionalised procurement is already embedded in our DNA.
For over a decade now, we have operated through five regional business units, ensuring that procurement frameworks are tailored to local needs while aligning with national policy priorities.
We are well placed to support local authorities through this transition, providing regional procurement frameworks that are already aligned with the white paper’s ambitions.
Making the most of devolution
Devolution represents a huge opportunity to reshape public sector procurement in England. But realising its promises requires action:
- Local authorities must embrace strategic, value-driven procurement.
- Regional suppliers and SMEs must be supported to thrive in new procurement models.
- Social value must be a priority, ensuring procurement delivers long-term community impact.
At LHCPG, we are ready to support local authorities through this transition, providing proven, effective procurement solutions that align with the goals of devolution.
We welcome discussions with local authorities, procurement professionals and policymakers who are looking to make devolution work for their communities.
Together we can ensure that procurement becomes the driving force behind the success of English devolution.
*Please note that this is a commercial profile.
