Proof that Community Benefit Clauses work revealed

Community Benefit Clauses in public contracts are making a real difference according to published research.   The Procurement Reform (Scotland) Act 2014 requires public bodies to consider the use of community benefit clauses in all contracts over £4 million.

24 sample contracts were looked at for the research, which revealed that over 1000 people from priority groups were recruited – it was estimated that 38% of these would not have been recruited without the clause.  75% remained in employment at the time of the research.

78% of the 200+ apprentices from priority groups that were recruited would not have been recruited without the inclusion of a Community Benefit Clause and 100% of these gained sustained employment.   72% of the 650 work placements that were offered to priority groups were also regarded as additional.

Cabinet Secretary for Infrastructure, Investment and Cities, Keith Brown, welcomed the findings and said:

“This research supports our commitment to use public contracts to deliver tangible community benefits. Using public spending to boost training, employment and sub-contracting opportunities underpins the Scottish Government’s main priority of creating a more successful country through sustainable economic growth.

The findings of the research, which was carried out by Glasgow University, will be used to inform forthcoming statutory guidance on Community Benefit Clauses in public sector contracts.

Source: Scottish Government

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