Local Gov leads on VCSE procurement - DCMS x Tussell

Procuring more with the Third Sector has long been a government ambition.

A new Tussell report commissioned by the Department for Culture, Media & Sport, however, shows that there remains significant room for improvement.

Our analysis shows that the share of public procurement spent directly with VCSEs has remained broadly flat for several years, despite more VCSEs invoicing the public sector than ever before. Local Government is leading by example, procuring by far the most with the Third Sector, while Central Government lags significantly behind.

Looking to set your authority's VCSE procurement targets for 2026 & beyond? This is your go-to benchmark.

Download the DCMS x Tussell VCSE Report

Our key findings:

• Between FY19/20 - FY23/25, VCSEs earned over £80 billion in direct public sector revenue, representing 8% of all procurement spending across the period.

• VCSEs' share of the procurement market has hovered at 9% across the period, despite wider market growth.

• Just 10% of contracts won by VCSEs went via a framework (vs. 28% for non-VCSE contracts)

• Local Government spent 2.5x more directly with VCSEs in FY23/24 compared to Central Government.
  
  

Click here to access the full VCSE Report.

*

Tussell remains the government's go-to source of insight on public procurement.

Contracting authorities across the UK - including the Cabinet Office, CCS and the Greater Manchester Combined Authority - trust Tussell insights to help them procure smarter.

To learn how your team could be leveraging procurement intelligence to drive better purchasing, book in a chat with our team.