Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026

Lord Jamieson Excerpts

Wednesday 21st January 2026 Grand Committee

[Lord Shipley (LD)]

My Lords, I am grateful for this statutory instrument, which I support and which will be hugely helpful for local taxpayers in the generation of local jobs. I note the comments of the noble Lord, Lord Kirkhope of Harrogate; I look forward to the Minister’s response to all the points made by the noble Lord. I would say just two things. First, we are talking here about procurement contracts below the threshold. Secondly, I believe that best value can include the generation of local jobs as a consequence of that procurement process; there has to be an allowance for that.

I want to ask one specific question of the Minister, which I hope can be replied to now. It touches on a point made by the noble Lord, Lord Kirkhope of Harrogate: the definition of local area. I have not understood it; nor have I understood why there is reference in the Explanatory Notes to the consultation that took place in relation to combined authorities. My immediate reaction when I read this statutory instrument was that I did not understand how combined authorities fitted into this structure. It is quite difficult to see how that would work.

In particular, in Article 3(5)(a), the local area is defined very clearly. It is stated that,

“where there is one relevant authority”—

let us say one council—

“which intends to enter into a relevant contract … the area of that authority”

is the whole of the area of that authority. My understanding of this is that a council cannot subdivide its area; it has to be within its whole area. However, it can also be “the area specified” as

“the area of that authority, or … any of the areas of the counties or London boroughs that border that area”.

I have not understood why the counties and London boroughs are pulled out in this order as being a special case when the metropolitan districts are not in the old metropolitan counties—from my perspective, in the north-east of England, West Yorkshire or South Yorkshire. If one council decides to enter a procurement process, is it forbidden to define its local area as a neighbouring authority or part of one?

For the sake of choosing a random example, if Bradford Council decided that it wished to procure as a single authority, would it be able to run the process including a neighbourhood area such as Calderdale, Kirklees or Leeds? I have not understood this; nor have I understood why this issue is not addressed in the context of the Bill on English devolution that is going through, where this issue is not mentioned at all. Procurement does not appear in that Bill. It seems to me that there is a need for clarity on why the combined authorities are excluded and why the London boroughs have become a special case. All metropolitan areas should be a special case.

Beyond that, I am happy for the Minister to write in reply, if this is seen as at all complicated, but we need absolute clarity here now; otherwise, when people start to implement the order, there is going to be confusion about what they are allowed to do. Otherwise, I am in favour of this order.

[Lord Jamieson (Con)]

My Lords, I declare my interest as a councillor in central Bedfordshire.

We are generally coming to a fairly positive view across the parties on this instrument. It makes a notable change to the long-standing restrictions in Section 17 of the Local Government Act 1988, which were originally designed to prevent local authorities taking account of non-commercial considerations, including location of supplier, when awarding contracts. As the Minister clearly outlined, this order proposes to disapply that restriction in a narrow set of circumstances, allowing local authorities, best-value authorities and parish councils to reserve below-threshold contracts either to suppliers based anywhere in the United Kingdom or within a defined local area.

The intention is clear: to give local authorities greater flexibility regarding their local economies, their local supply chains and, where appropriate, the use of local SMEs and VCSEs. Many of us recognise that that is a positive move for local government on small-scale contracts. However, it would be helpful to get further clarity on some issues. The noble Lords, Lord Kirkhope of Harrogate and Lord Shipley, raised the issue of the definition of boundaries. Is it sub-local? Does it include metropolitan boroughs and so on? I would like assurance and clarity on that, as well as on what level of flexibility there is.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

We are discussing a matter of semantics here, but the confusion might have occurred because, under the Local Government Act 1972, “county” includes metropolitan authorities. That might be the issue, but it is only fair that I set that out more clearly in writing to all the noble Lords who have taken part in the debate.

The noble Lord, Lord Jamieson, referred to frameworks —and, yes, councils can still jointly procure under this process. He spoke about VCSEs. We will, of course, keep all matters under review in that way. I hope that this is a real opportunity for VCSEs; over many years of procuring contracts, I have often heard them say that not enough consideration is given to the possibility of VCSE delivery, so I hope that this will expand the opportunities for VCSEs.

The noble Lord spoke about the restriction that meant that this was not implemented before. Again, we did not go out to consultation because the consultation had already been done. I do not know why the previous Government took the decision to change tack and not implement it, but the response to the consultation was very clear that the previous proposals would be too restrictive, which is why we made these changes and brought them in, in the way that we have.

I just want to say that I said the term “subcentral”, but it is not a term that I would ever use myself. I will make sure that it does not appear in any of my future appearances before the Committee.

[Lord Jamieson (Con)]

I want just to clarify the point that I tried to make about consortiums. I want to make sure how the consortium will function where maybe people are looking, shall we say, to give some local focus. If you end up in a consortium, which might be Bedfordshire, Hertfordshire and Kent, will you be able then to say, “We’ll only accept bids from people from Hertfordshire, Bedfordshire and Kent” because they are not coterminous, not neighbouring? I am not expecting an answer now, but perhaps the Minister could kindly give it some thought and just say whether, if one enters into a consortium, the footprint can effectively be the consortium?