A New Era for Local Investment
The UK government’s devolution agenda is reshaping the way local authorities plan, fund and deliver public sector projects. With greater control over spending and decision-making, regions like the South West of England and the West Midlands can now invest in infrastructure that directly addresses local needs—whether that’s improving transport networks in Gloucester, delivering new housing in Bristol, or enhancing healthcare facilities in Birmingham.
For those involved in public sector procurement, this shift presents both opportunities and challenges. While devolution provides greater autonomy and more direct funding, it also requires councils and procurement teams to ensure compliance, cost-effectiveness, and efficient project delivery. Here at Procure Partnerships Framework we can play a crucial role in supporting you by providing pre-approved contractors, multiple call off methods and expertise in the built environment sector.
To explore the wider impact of devolution on the built environment sector I’ve partnered with Darren Clarke, Account Director at Arcadis, to discuss some of the key developments shaping regional infrastructure and economic growth.
Darren Clarke, “Devolution is the default position and is recognised as being a key enabler to economic growth; infrastructure is always a safe bet for economic stimulus so there will undoubtedly be considerable funding to support, for example, regional transport connections, housing, wider social infrastructure, and regeneration. The policy and strategy to deliver this scale of change will, increasingly so, come from the regional Mayors which of course builds in accountability at that more localised level – from those with “skin in the game” to quote the English Devolution White Paper.”
How Devolution is Impacting the Built Environment Sector
With devolution agreements granting more control to combined authorities and local councils, regions can now prioritise investments that matter most to their communities.
According to the English devolution White Paper, in the South West, devolution is already enabling region-wide action on key built environment priorities such as sustainability and infrastructure.
The West of England Combined Authority’s (WECA) Climate and Ecology Strategy and Action Plan is a clear example of this in motion. By leveraging its devolved powers and strategic convening role, WECA has developed a long-term plan to reach net zero by 2030 and support nature recovery across the region.
This strategy ties together regional aims across transport, energy, buildings, business, and climate resilience, and directs funding to where it will have the greatest impact. Through its £60 million Green Recovery Fund, WECA is targeting their investments in decarbonising the West of England’s infrastructure. This has included investing £5 million to deliver 300 electric charge points and 400 charging bays, to increase uptake of zero emission vehicles.
However, while devolution unlocks new funding streams, it also presents challenges in procurement. Councils must navigate complex regulations, ensure value for money, and coordinate between multiple stakeholders to prevent inefficiencies. Additionally, there is a growing need to support SMEs, ensuring that local contractors can fairly compete for public sector contracts.
The Future of Procurement in a Devolved UK
As more powers are transferred to regional authorities, procurement will need to evolve to match new funding models, policy priorities, and delivery expectations. The Local Government Lawyer’s Guide to Devolution highlights the importance of procurement efficiency in this new landscape.
Local governments should focus on:
• Maximising devolved budgets by selecting cost-effective procurement routes.
• Encouraging early contractor engagement to improve collaboration and efficiency.
• Leveraging procurement expertise to ensure projects align with government objectives and community needs.
By adopting a smart, strategic approach, devolution has the potential to unlock a new wave of infrastructure development, delivering lasting economic and social benefits for communities across the South West and West Midlands.
This sentiment is echoed by Clarke, who emphasises both the scale of opportunity and the practical challenges regional authorities may face as they take on more responsibility:
“The opportunities are considerable because funding will now be longer-term with greater clarity on direction to provide certainty in the pipeline for capital portfolios, so change therefore can be achieved at pace with these conditions.
There will invariably be challenges in how projects are prioritised and delivered because new delivery models around public-private capital will be required and the capability and capacity to deliver increasingly large-scale capital programmes will be vital.
We also suspect that there could be challenges in the supply chains required to deliver infrastructure as labour shortages and sector-level growth drive toward a supplier’s market – Local Government must therefore consider the levers available to be a preferred client and partner to suppliers.”
Why Procurement Frameworks Are Essential Under Devolution
As councils adjust to the changes that will incur during devolution, frameworks like Procure Partnerships provide a ready-made solution to fast-track projects while ensuring compliance and cost-efficiency.
Reducing Costs Compared to Open Tendering
Traditional open tendering can be expensive and time-consuming. With tight budgets and urgent project deadlines, councils in the South West and West Midlands need a procurement approach that delivers value without excessive overheads.
Framework agreements streamline procurement and deliver cost savings in several ways. By providing access to a pool of vetted contractors and consultants, we eliminate the time and expense associated with supplier evaluation.
Unlike open tendering where bidders may inflate prices and procurement teams struggle to benchmark costs, frameworks like Procure Partnerships ensure contractors operate within a fixed overhead and profit percentage. This structured pricing model drives cost savings and ensures competitive contractor rates from the outset.
For more information on how using our framework is a more cost effective solution compared to open tendering check out our article by Chris Witterick, the open tender trap, here.
Speed and Flexibility in Project Delivery
With many devolved funding agreements tied to specific timelines, local authorities must mobilise projects quickly to secure investment. Delays in procurement can mean missing out on funding opportunities altogether.
Procure Partnerships offers multiple call-off methods, including direct award, single-stage, and two-stage tendering, providing the flexibility to suit different project requirements and time constraints. This adaptability is particularly beneficial in a decentralised funding model, where each region must make every pound count.
Supporting Local Contractors & SMEs
A key objective of devolution is to boost regional and local economies by ensuring that public sector spending stays within local communities. We help facilitate this by promoting an emphasis on social value. The average Social Value Add (SVA) of a Procure Partnerships Framework project has been calculated at 63%, which is 53%+ above the government’s 10% stipulation.
This means:
- More local job creation in cities like Birmingham, Coventry and Bristol.
- Increased opportunities for local contractors to be involved in public sector works.
- Ensuring that large infrastructure investments bring long-term benefits to local communities. Some of our core KPI themes like wellbeing, employability and environmental are how we measure our success.
Devolution marks an exciting shift for public sector procurement, offering local authorities greater control over funding and decision-making. However, to fully capitalise on this opportunity, councils and procurement teams must ensure that projects are delivered efficiently, transparently, and cost-effectively.
By working with us devolved authorities can streamline procurement and reduce unnecessary delays, ensure funding is used strategically for maximum regional impact and support local contractors, SMEs, and social value initiatives.
If you need clarity on how our framework could successfully help deliver your project, contact me today on 0739 947 5944 or via email lauren@procurepartnerships.co.uk
