The Local Government Procurement Report 2025

In 2024, local authorities spent over £81bn on procurement - equivalent to over 3% of UK GDP. This spending has the potential to transform local economies, sustain SMEs, and empower the third sector.

But how much of it actually ends up going to VCSEs, SMEs, and local businesses? Or, is it all just spent with large businesses?

Tussell and LocalGov's 2025 Local Government Procurement Report uses Tussell data to unpack Local Government spending - and reveals troubling trends about the third sector and regional spending inequalities.

Download the full report for free.

How much does Local Government spend with VCSEs and SMEs?

In 2024, UK local governments spent £35.0bn, £28.8bn, and £8.7bn directly with local firms, SMEs and VCSEs. Respectively, this accounts for 43%, 35%, and 11% of local governments' total procurement spending during this time.

However, the picture is very uneven. 

Tussell and LocalGov's report shows that stark regional divides exist - and that even within regions, some councils perform highly whereas others require significant improvement.

If you work for a local authority, you can view your ranking on Tussell's Local Government Procurement Index.

Otherwise, download our 2025 Local Government Procurement Report to get the full picture.

Packed with exclusive insights and actionable data, it's a must-read for anyone in public sector policy or procurement.

Click here to download the Local Government Procurement Report

Tussell is the market's trusted source of public sector procurement insights.

To future-proof your procurement strategy, benchmark your spending with SMEs and VCSEs, and find the right frameworks for your procurements, book a chat with the Tussell team.