£5m boost from thinking locally
Mar 18 2009 by Rob Pattinson, The Journal
A NORTH mayor has committed his council to breathing life back into his borough by spending locally and guaranteeing thousands of jobs.
Elected mayor of North Tyneside John Harrison has given his full backing to The Journal’s Think North East First campaign and committed his council to a 10% target for procurement in the local economy.
If the aim is met it will mean a cash injection of £5m, just from the council b uying locally. The announcement comes after Mr Harrison secured more than the third backing he required for his budget to be passed by the North Tyneside Council executive.
The Mayor has claimed it is ‘a budget for jobs’, to ‘counteract difficult economic conditions’.
He said: “The people of the Borough are looking for leadership during these tough times and this budget sets out a clear course through the choppy economic waters. We are pledging to support local business and to help it grow to meet the new challenges of the economy.
“The council can lead the way during the economic downturn by sourcing procurement within current guidelines to buy local. My aim is to spend up to 10% of the council procurement spend in North Tyneside and its locality which will mean over £5m pumped into the local economy per year. It makes economic sense when you look at the wealth creation.
“My budget is judged against my three tests, economic impact, value for money and legacy and our £1bn programme of public works over the next ten years meets these tests with flying colours.
As part of our campaign we urged councils to do all they can to keep public sector spending in the region by giving local firms every opportunity.
Figures from North Tyneside illustrate the importance of wealth retention – every £1 spent outside the borough’s economy only generates 36p for local business, while every £1 spent inside nets the economy £1.76 – almost five times as much. This rate of recycling cash means the £5m spend the council is aiming at could generate up to £24m in the local economy. Spending schemes already announced under the budget have guaranteed thousands of jobs. These include: the Building Schools for the Future (BSF), which will create 1,500 construction jobs over five years; Sheltered Accommodation PFI scheme, creating 300 construction jobs and; an apprentice programme offering 100 jobs a year.
Mr Harrison said: “I believe the 10% target we’ve set is realistic and achievable and will have the desired impact. I have to balance what we do with competition rules. I believe it will make a real difference to the community. It is something we have always aimed to do, and there is no better time than now to continue with the plan.”
