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Public sector procurement generated £13bn for Scottish economy – figures

More than £13.8 billion was generated from public sector procurement (PA)
More than £13.8 billion was generated from public sector procurement (PA)

More than £13 billion was generated for the economy from public sector procurement spend in Scotland in 2021-22, figures show.

Official statistics released by the Scottish Government showed £16 billion in total was spent on procurement in the year, with £13.8 billion for economic activity.

Meanwhile, it contributed to 130,000 full-time equivalent jobs and about £7.5 billion to GDP (gross domestic product).

Figures covering the year 2021-22 showed 6,359 regulated contracts were awarded by the 128 reporting bodies, up from 5,421 across 118 public bodies.

The public finance minister, Tom Arthur, said: “As Scotland grappled with the impact of the pandemic as well as the cost-of-living crisis, it is encouraging that these figures show how public sector purchasing power helped contribute billions to the Scottish economy and supported thousands of jobs.

“We are absolutely committed to continuing work to improve our public services and this report demonstrates how public sector procurement can act as a driver to generate a range of positive economic, social and environmental benefits.

“The commitment from public bodies to deliver responsible procurement which benefits businesses, employees and communities in Scotland is clear.

“I welcome this report and the important role procurement plays to make Scotland a better place to live, work and do business.”

A breakdown of the figures showed small or medium size enterprises (SMEs) in Scotland received £4.2 billion.

And £3.8 billion, or 43.3% of spend, was with suppliers based within the local area of the purchasing body.