10 Reasons Why…. Cities Should Interpret Their Spend Analysis

Whilst collecting this data is important, of equal importance is how it can be interpreted and used for the purposes of policy and practice. In Kavala, we explored different ways in which Preston (as the Good Practice City) have interpreted their Spend Analysis over the course of the last seven years and identified 10 key reasons why Municipalities and Anchor Institutions should interpret their Spend Analysis:

• It makes sense to understand where money goes and its wider impact;
• It enables them to understand in depth where public money is going in terms of geography of suppliers and employees, sectors of suppliers, and the types of suppliers spending is being undertaken with;
• It gives them a promotional figure for how much they are spending in their local economy. This is particularly important for developing an evidence base of how a City is contributing to its local economy directly through procurement;
• It enables them to be transparent to citizens as to how public money is being spent. Citizens will pay taxes both nationally and locally and have a democratic right for Municipalities in particular to be accountable;
• It will give political representatives an advantage over other parties as it shows a commitment to the local economy (how procurement contributes to this) and citizens;
• It gives them an evidence base which can inform new policies and practices which are both beneficial to local businesses and citizens;
• Many cities are exploring their procurement spend, but from an efficiency point of view. Interpretation enables them to go further;
• Procurement is increasingly being viewed as a lever to addressing societal and environmental challenges – it could enable them to be be at the forefront of a new approach to public procurement across Europe;
• It will enable them to change the way in which Procurement and Human Resources Officers think, with a particular emphasis upon the generation of social, environmental and local economic outcomes;
• It will enable them to challenge orthodox approaches to Economic Development and particularly that of trickle-down. Interpreting spend will enable them to become more progressive in procurement and economic development.

 Matthew Baqueriza-Jackson is the Lead Expert for Making Spend Matter.