My Lords, I am very pleased to follow the noble Baroness, Lady Sheehan, and my few remarks will build on what she said. I will look at where the money is going, in terms of UK public procurement, which, at the moment, accounts for £300 billion a year, or 13% of GDP. Recent research by the World Economic Forum estimates that government procurement accounts for 15% of our greenhouse gas emissions. By harnessing the enormous lever of procurement, government can show strong leadership in driving climate-positive and nature-positive public procurement. As well contributing towards the achievement of our net-zero and environment targets, it can contribute hugely to levelling up across communities by driving investment in new, low-carbon technologies, services and skilled jobs, as well as better health and well-being outcomes. You can get a lot of bang for your buck out of this.
I will also reference Chris Skidmore’s Net Zero Review, which came out this week. It recommended that the Government
“develop a public procurement plan for low-carbon construction and the use of low-carbon materials, by the end of 2023”—
which is this year. It also recommended that the Government
“set standards and build new markets for low-carbon construction through its own public procurement standards”,
which would
“send strong signals to the sector and enable firms to test innovations and start to scale them up”—
which is precisely what we need. We need to link into this agenda, which will help drive opportunities across all local authorities and will hugely help private companies. The Part Z campaign is already calling for these kinds of changes. Building regulations to introduce the reporting of carbon emissions and to limit embodied carbon emissions in new developments would of course help to drive down emissions. The Bill is the perfect place to introduce these changes.
The Net Zero Review also highlighted the example of how Preston in Lancashire has used its net-zero delivery strategy to retain procurement spend locally
and to prioritise procurement from local and socially responsible businesses, helping to build community wealth. In my work on food over the last 15 years or so, I have seen a lot of local authorities make decisions about the local procurement of food, which is a win-win, not only for local growers, who have a market, but for the end users: we, the eaters, get better food at better prices.
In a report on the impact of locally spent money, the New Economics Foundation found that, if you spend £1 in a local shop, you will generate £10, but, if you spend it on a multinational or a company that is not local, such as Tesco—I am not singling it out—that money goes whizzing back to head office and does not circulate in the community. In this case, it is not just the growers who do not get the work; it is also the plumber, the locksmith and the printer, because that money is taken away. We have seen other towns do this, and I have put down amendments to other Bills to look at 50% of government procurement being used locally to generate local jobs and industry.
I will make two final points. During Report on the Procurement Bill in the Lords, an amendment was passed to ensure that the strategic priorities included in the national procurement policy would include achieving our climate change and environmental targets, adding social value, promoting innovation among all potential suppliers and minimising fraud. That Bill is now approaching Committee in the other place, and I hope that the Government will not seek to remove this important amendment.
Finally, another huge lever for linking up the delivery of our climate change targets and levelling up is planning, as many noble Lords have pointed out. In its progress report to Parliament, the Climate Change Committee recommended:
“Net Zero and climate resilience should be embedded within the planning reforms that are expected”
to be part of levelling up and regeneration. The Net Zero Review recommended that a reformed planning system
“should have a clearer vision”.
The Government have recently consulted on reforms to the national planning policy, seeking views on
“opportunities to support the natural environment, respond to climate change”
and make sure that it always contributes to “mitigation and adaptation”. However, the reforms are proposed to come in after the Bill has received Royal Assent, so please could provisions be included in the Bill to fully align our planning system with net zero at every decision-making level and to demonstrate that government leadership and commitment are really about delivering net zero, as well as social benefit?
6.19 pm