Key facts
- Government contracts will no longer require proof of green and progressive values.
- Companies must now demonstrate how they will help young people into employment.
- The weighting for job creation in contract decisions will increase from 10% to 20%.
- Contracts valued at less than £1 million will be exempt from the new rules.
- Environmental groups have voiced concerns that this change prioritizes jobs over environmental protection.
The UK government is shifting its procurement strategy, moving away from environmental and social value targets towards a greater emphasis on job creation for young people. Under the new rules, public sector buyers will increase the weighting of job creation in contract awards from 10% to 20%, while environmental and progressive value requirements will be scrapped.
Ministers argue this change will benefit small businesses, which often struggle with the current requirements, and will ensure that the approximately £90 billion spent annually on government contracts directly supports British jobs, skills, and local communities. First Secretary of State Louise Haigh stated that the move aims to make government spending more impactful, focusing on tangible benefits like employment and skills development for young people, including those not in education, employment, or training (Neets), care leavers, and individuals with long-term health conditions.
However, the policy has drawn criticism from environmental and green campaign groups. They argue that job creation should not be a trade-off with environmental protection, and that companies should be held accountable for both. Critics suggest that environmental targets and job creation can be mutually beneficial and that scrapping sustainability requirements is not the solution to youth unemployment. Contracts valued below £1 million will be exempt from the new job creation requirements, a measure intended to ease competition for smaller firms.