GOVERNMENT DOUBLES WEIGHTING FOR JOB CREATION IN £90BN CONTRACT BIDS

The government has announced changes to the £90bn public procurement system that will require companies bidding for contracts worth £5m or more to prioritise job creation over environmental and social measures. The weighting given to social value will double from 10 per cent to 20 per cent of the assessment for contracts at that level, with the new scoring based entirely on job creation rather than the previous measures covering equality and diversity, net zero and post-Covid recovery. Bidders will receive additional credit for creating local jobs paying above the minimum wage, offering training to address local skills gaps, and providing 45-day work experience placements for young people. The rules will apply to both British and international firms bidding for central government contracts and take effect from 1 January 2027.

The changes form part of the government's response to youth unemployment. According to Office for National Statistics figures, more than a million people aged 16 to 24 were not in education, employment or training in the first three months of 2026. Prime Minister Andy Burnham has stated he wants to create "growth in every postcode". The government has appointed former Marks & Spencer chief executive Marc Bolland to encourage employers to provide 300,000 work experience and training placements for young people. First Secretary of State Louise Haigh described the existing procurement process as a "tick-box exercise".

Green groups have criticised the plans, arguing that supporting young people into work should not come at the expense of environmental targets. The Cabinet Office said detailed technical guidance will be issued in autumn 2026. Cabinet Office Minister Mark Ferguson stated that businesses securing government contracts "have a responsibility to give back" to communities.