South Tyneside Metropolitan Borough Council

06/05/2019 | News release | Distributed by Public on 06/05/2019 07:01

Half of Council Spending Goes to the Local Economy

Over half of South Tyneside Council spending is with local business.

New figures show that since the introduction of 'Supply South Tyneside' there has been an increase in the amount of money the council spends with local businesses by a staggering 21 per cent.

In a determined bid to support local businesses and protect local jobs, South Tyneside Council launched 'Supply South Tyneside' in 2011 - to help them to identify, bid for, and win public sector contracts. The council updated its internal procurement rules to maximise the opportunity for local suppliers to win Council business and in turn support local economic regeneration

Latest figures show that in 2018/19 South Tyneside Council spent over £207.5 million on goods and services and of this almost £115 million (55.33 per cent) was spent locally - bringing a massive boost to the local economy.

Cllr Iain Malcolm, Leader of South Tyneside Council said: 'The 'Supply South Tyneside' scheme demonstrates our total commitment to the ongoing economic prosperity of the Borough. It represents positive and direct action to ensure that buying local is not just common sense but makes real good business sense.

'As a council we are committed to doing everything we can to stimulate the local economy. We spend a significant amount of money on commissioned supplies, services and works provided by external organisations. They help us to deliver essential services from social care to housing repair - we must ensure that not only do we get value for money for our tax payers but that the money we spend reaps an economic benefit to our communities.'

The Council's proactive approach to boosting the local economy has helped to keep a family bakery afloat in tough economic times.

Rae's Bakery, based at Western Approach in South Shields, won the tender to supply bread buns to local schools with the £100,000 contract the largest on its books.

Managing Director, Dave Thompson, said: 'The council contract is incredibly important to us as it brings much-needed volume through the business. I think we would have definitely gone under without it.

'At the very least, we would have had to lose three of four employees from the business and we may well have just decided to give up as the economic climate is so challenging.'

Rae's bakery, which employs 23 people at its South Shields base, already had experience in supplying local schools but Dave commended the Council for its straightforward tendering process.

'The online process was very simplistic and there were specialist advisors available for any firms which were completely new to tendering for public sector contracts,' said Dave.

When Supply South Tyneside was established, the Council set a target of 50 per cent to be spent locally. With local spending now at 55.33 per cent, that target has been surpassed but the council is determined to grow this figure even further, to expand the South Tyneside businesses community.

Since 2010 the Council has spent £1.7bn - £826m was spent with South Tyneside businesses and £1.2bn with Tyne and Wear businesses.

Cllr Malcolm continued: 'The Council is proactive in supporting local economic growth. The whole idea is to spend more Council money locally and to allow as many local firms as possible to compete for contracts to supply goods and services.

'In uncertain economic times it is even more important that we do everything we can to help our local businesses thrive.'

For further information about 'selling to the Council' visit or call the Procurement Team on (0191) 424 7008.