Key London public sector organisations have announced £1.3bn of procurement spend will go to small businesses to promote the capital's recovery from the pandemic.
The organisations, including the Greater London Authority (GLA), NHS London and the Metropolitan Police, say they will implement changes to budgets and suppliers to increase spend with SMEs.
This year £124m will be spent with small businesses, with a further £1.17bn expected to spent in the next 3-5 years.
London mayor Sadiq Khan described the plan as an “ambitious target” which will “help support a fair, green recovery from the pandemic”.
Khan said: “I have been working side-by-side with some of London’s largest institutions in this unprecedented partnership, ensuring that the collective impact of our procurement, hiring and estate decisions will contribute directly towards reducing poverty and inequality in our city.”
Under the plan:
• NHS London is pledging to increase annual spend with SMEs from 9% to 20%, spending £880m over the next five years;
• Metropolitan Police will spend £84m this year and £294m between 2023-25;
• contracts worth £610,000 have been reserved for diverse SMEs this year;
• University of London will spend £5m with SMEs this year;
• Transport for London has “ambition” to spend 20% with SMEs;
• GLA has committed to spend 30% with diverse micro and small businesses, equating to £35.4m this year.
The organisations are part of The Anchor Institutions’ Network, a group of 16 public sector, higher education, and other bodies committed to promoting London's economic recovery.
Lizzie Smith, Health Education England London regional director and senior responsible owner for the NHS London Anchor programme, said: “The NHS has an important role to play across the capital, not only in continuing the high-quality care of our patients, but also as a large employer and institution.
“Through the services and products that we commission, the food and supplies we order, and how we maintain our hospitals, we are able to make a real difference to the lives of people living and working in London.
“We are committed to bringing social value, reducing inequalities and helping the London economy flourish again.”
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