Welsh Government wants more public contracts to go to Wales-based suppliers

Nation.Cymru staff

The Welsh Government wants to increase the share of public spending on goods, services and works that goes to Wales-based suppliers from about 55% to nearer 70%.

Public bodies in Wales spend around £11.4 billion a year on everything from food and social care to construction and building maintenance. Finance Minister Elin Jones said directing more of that spending to suppliers based in Wales could help create tens of thousands of jobs.

The proposals are set out in a draft Wales Procurement Policy Statement, which is now open for consultation. It sets out ways for public bodies to remove barriers that make it harder for small businesses and social enterprises to bid for contracts. It also proposes using contracts to require suppliers to provide jobs, apprenticeships and training.

Speaking at Procurex Wales in Cardiff on Wednesday, Ms Jones said: “Public procurement is one of the most powerful tools available to government. Used well, it can strengthen Welsh businesses, support good jobs, accelerate our transition to a greener economy and make a real difference for communities across Wales.”

The draft identifies sectors where suppliers in Wales could meet more of the public sector’s needs, including food and timber production, construction, social care and professional services. It also asks public bodies to consider how contracts can support secure employment, strengthen local supply chains and reduce environmental impact.

The Welsh Government pointed to an electric vehicle programme supplied by three Wales-based businesses as an example. It said the programme was saving the Welsh public sector around £1.5 million a year and had cut more than 6,000 tonnes of carbon emissions.

Ms Jones urged businesses and suppliers to take part in the consultation. “Challenge us where you think we have it wrong and help us build a statement that is ambitious, practical and reflects the realities of procurement in Wales,” she said.

Public bodies, businesses, charities, trade unions and members of the public have until 28 January 2027 to respond. The Welsh Government will consider the responses before laying the final statement before the Senedd. Read the consultation and find out how to respond.