What do the public sector buy?

We speak to business owners who have never considered selling to the public sector.  One reason is that they do not think the public sector would buy from them.

The public sector is massive.  In 2019 it is estimated the UK Government spent £644.5 billion, local authorities £176.5 billion.  This can be split down to the following functions/departments:

  • Pensions                                                             £161.1 billion

  • Healthcare                                                         £162 billion

  • Education                                                           £91.8 billion

  • Defence                                                              £50.3 billion

  • Welfare                                                                £126.3 billion

  • Protection                                                          £33.3 billion

  • Transportation                                                  £34.7 billion

  • General Government                                     £16.9 billion

  • Other spending                                                 £117.9 billion

Everything that public sector organisation’s needs, from pencils to buildings to care at home services, has to be purchased. 

The public sector groups what they have to buy into goods, service and works. 

We’ve had a look at some the contract notices and contract award notices which have been published on the Public Contract Scotland portal this year and found a huge range.  Some of what the Scottish Public Sector have purchased this year are:

  • Search Engine Optimisation

  • Demolition works at council yard

  • Provision of Occupational Health and Wellbeing Services

  • Creative Services

  • Purchase of Installation of Modular Buildings

  • Lease Cars and Associated Service

  • Peer Support Services

  • Document Solutions Centre Print Devices

  • Services to Support Educational Attainment

  • Core Banking Services

  • Digital Signage

  • Office Refurbishment

  • Flooring Contract.

All public sector contracts equal to or above £50,000 (excluding VAT) for goods and services must be advertised (in Scotland on Public Contracts Scotland).  Some public sector bodies also use PCS to contact suppliers directly to invite quotes (Quick Quotes) for opportunities below this value.

If you are interested in selling to the public sector get in touch for a chat about the first steps to take.

Shiona Campbell