The British Chambers of Commerce (BCC) is urging government to transform public procurement and infrastructure delivery to unlock growth.
At its Global Annual Conference, today, it has launched a new report – A Smarter Way to Deliver Infrastructure: The Great British Supply Chain – setting out how this can be done.
Among its key recommendations are:
- Simplifying procurement rules and rebalancing social value criteria to increase SME participation and local economic impact
- Embedding Local Skills Improvement Plans (LSIPs) into all major infrastructure projects to align skills with delivery needs
- Committing to a long-term programme of transport, digital and energy infrastructure investment to unlock supply chain capacity
The plans were announced by Director General Shevaun Haviland during her conference speech. The report analyses how fragmented procurement systems and supply chain pressures are holding back UK economic potential.
While small and medium sized business make up 99% of UK businesses, they currently receive just 22% of direct public procurement spend. Increasing this share to the government’s 33% target would redirect up to £20bn a year into regional economies, strengthening resilience and boosting growth.
The report also underlines the wider economic benefit that comes from supporting more local suppliers. Every £1 spent locally generates £1.76 in economic value, compared to just £0.36 when this money is spent outside the area.
But complex and resource-intensive procurement processes, skills shortages, and poor infrastructure are preventing smaller firms from accessing opportunities and delivering at scale.
Drawing on extensive experience from its Chamber network, including involvement in major projects such as Hinkley Point, Crossrail and Sizewell, the BCC is proposing a practical plan to build a more inclusive and resilient ‘Great British Supply Chain’.
Shevaun Haviland, Director General of the BCC, said:
“Public procurement should be one of the most powerful tools we have to drive growth across the UK. But right now, it is too complex, too fragmented, and too often excludes the very businesses that can deliver innovation and impact.
“Our analysis shows that unlocking supply chains is one of the fastest ways to boost regional economies, create high-quality jobs and strengthen resilience in the face of global uncertainty.
“Chambers of Commerce across the UK are demonstrating what works — helping pump billions of pounds into their communities by connecting local businesses to major projects.
“We are already speaking to government about how we build on this ambition. By simplifying procurement, investing in skills and infrastructure, and opening up opportunities to SMEs, we can build stronger supply chains that work for every region of the UK.
“The tools exist. Businesses are ready. This is a chance to deliver growth at pace and scale.”