Guide
Local spend targets across the UK
There is no UK-wide target for how much public money is spent locally. What exists differs nation by nation: small business targets for central government, a new community wealth building law in Scotland, a reporting duty in Wales, and councils setting their own goals. Here is what each one actually requires.
Last checked: 15 October 2026
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Central government: small business targets, not local ones
Every UK government department now has a published target for direct spend with small and medium-sized firms, under PPN 001. It says nothing about where those firms are, and it excludes the devolved governments, councils and NHS trusts. See government SME spend targets explained.
England: councils set their own goals
No law sets a local spend target for English councils, but every council must publish each payment over £500 under the Local Government Transparency Code, and many report how much of their spend stays in their area. Councils already give small firms more of their work than any other public buyer; see councils and small businesses.
Scotland: community wealth building, now law
The Community Wealth Building (Scotland) Act 2026 was passed on 10 February 2026 and became law on 25 March 2026. It requires:
- a national community wealth building statement from Scottish Ministers, whose measures must include using public procurement to keep wealth in local and regional economies;
- local community wealth building partnerships to publish action plans, which may include supporting local businesses to win public sector contracts;
- each action plan to set out indicators for measuring progress, and it may set targets.
So the Act sets no national local spend target, though local partnerships can now set their own. Proposals for local spend targets were discussed during the bill's passage; check each area's action plan as they are published. Separately, Scotland's public bodies already have a sustainable procurement duty under the Procurement Reform (Scotland) Act 2014, and most Scottish tenders appear on Public Contracts Scotland.
Wales: a yearly report on local benefit
From 1 April 2026, a public body in Wales that awards a prescribed contract must publish an annual procurement report under section 39 of the Social Partnership and Public Procurement (Wales) Act 2023. It covers how its buying met its socially responsible objectives and what it expects to buy over the next two years. The Act lets Welsh Ministers require information on benefiting the area's economy, including through contracts awarded to small and medium-sized enterprises. The Welsh Government's statutory guidance asks for reports within six months of the year end, by the end of September for most bodies. It is a duty to report, not a numeric target.
Northern Ireland
We have found no SME or local spend target for Northern Ireland's public bodies. Its procurement rules require social value to carry a minimum weighting in award decisions, which is where local benefit is usually scored; see the social value rules across the UK.
What it means if you are bidding
- Local benefit is scored, not assumed. Being nearby helps only when you say what it delivers: local jobs, apprentices, local subcontractors, money spent in the area.
- Read the plans. Scottish action plans, Welsh annual reports and council strategies tell you what a buyer is trying to achieve. Answer to that.
- Small helps too. Central government departments are now measured on how much they spend with small firms, wherever they are.
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Common questions
Local spend targets
Is there a target for public bodies to spend locally?
Not a UK-wide one. Central government departments have targets for spend with small businesses, not local ones. Scotland's Community Wealth Building Act 2026 lets local partnerships set targets in their action plans, and Wales now requires public bodies to report each year on how their buying supports their area's economy. Many councils set their own local spend goals.
Do the government's SME targets apply in Scotland and Wales?
No. PPN 001 excludes bodies whose functions are devolved to Scotland, Wales or Northern Ireland. UK government departments working in those nations are covered; the devolved governments, their councils and their health bodies are not.
How do I show a buyer that I am local?
Be specific: where your staff live, where you buy, the local subcontractors you will use and the apprentices you will take on. Local economic benefit is usually scored through social value, so it belongs in that answer with numbers attached.