Bidders on Public Projects Face Local Jobs and Skills Requirements

The UK government plans to change procurement rules so that businesses working on major public infrastructure projects help create local jobs and provide skills training.

The changes, currently under consultation, will apply to large-scale public investments in roads, railways, hospitals and schools. For businesses in sectors such as construction, civil engineering, transport infrastructure, and building services, this shift could influence how contract bids are assessed - and who wins the work.

What’s changing?

Under the new plans, public bodies will be expected to favour bids that clearly show how the business will benefit the local community. This might include commitments such as:

• Providing apprenticeships and T-level industry placements
• Opportunities for young people leaving the care system
• Helping people get into work and stay in work in that area

This follows earlier moves to encourage public bodies to consider "social value" when awarding contracts - but the new proposals would make such requirements mandatory on major infrastructure projects.

Why it matters

For small and medium-sized businesses working in construction, maintenance, or infrastructure-related sectors, these changes could become a defining part of how work is won.

Firms that already focus on local employment or work with apprentices may find themselves in a stronger position to compete. On the other hand, businesses that rely heavily on subcontracting without clear community benefit plans might need to rethink their approach.

The government has signalled it will also crack down on empty promises made during the tendering stage by introducing stronger monitoring to ensure companies follow through on job creation and training pledges.

See: https://www.gov.uk/government/news/boosting-british-jobs-and-skills-key-for-firms-to-win-major-infrastructure-projects

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