---
title: The Local Government Procurement Report 2025
description: In 2024, local authorities spent over £81bn on procurement - equivalent to over 3% of UK GDP.  But how much is being spent with VCSEs, SMEs and local firms?
---

[Insights for Public Procurement Professionals ](https://www.tussell.com/gov/blog)

# [The Local Government Procurement Report 2025](https://www.tussell.com/gov/blog/the-local-government-procurement-report)

 Written by [Ben Pollard](https://www.tussell.com/gov/blog/author/ben_pollard) | Jul 23, 2025 2:58:42 PM

*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](https://www.tussell.com/local-government-procurement-index-2025-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.](https://www.tussell.com/local-government-procurement-index-2025-report)

### 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](https://www.localgov.co.uk/)'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.](https://www.tussell.com/gov/local-gov-procurement-index)

Otherwise, download our [2025 Local Government Procurement Report](https://www.tussell.com/local-government-procurement-index-2025-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](https://www.tussell.com/local-government-procurement-index-2025-report)

[**](https://www.tussell.com/local-government-procurement-index-2025-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.](https://www.tussell.com/gov/tussell-demo)

<https://www.tussell.com/gov/tussell-demo-vcse-spend>

[View full post](https://www.tussell.com/gov/blog/the-local-government-procurement-report)

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