SCOTLAND’S public sector procurement spend generated more than £13 billion in economic activity in 2021-22, with the construction sector receiving the largest share of the spend.
Figures in a newly released report show that £2.1 billion, or 23% of the spend, was with suppliers operating in the construction sector. This was followed by human health and social work (£1.9 billion), and transportation and storage at 1.3 billion.
Across the entire spend, SMEs received £4.2 billion, whilst 48.9% (£4.3 billion) of all public procurement spend in the country was with suppliers based in Scotland’s most deprived areas – compared to the £3.9 billion spend the year before.
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.”
