Local Elections – What Happened and What it Means
The local elections took place on 2nd May across England, and the results are now in. Over 2,000 seats were contested in 107 councils, including metropolitan boroughs, unitary authorities, and district councils. The elections also included the London assembly, 11 mayors, and police and crime commissioners.
Key takeaways from the results
Labour had a good night - Labour made significant gains, securing over 180 council seats and taking control of eight councils, including traditional bellwether seats like Milton Keynes and Nuneaton. Labour's vote share increased by 3% compared to 2021 in key wards identified by the BBC. The party's best early result was in the Blackpool South by-election, where it secured a 26% swing from the Conservatives, one of the largest Tory-to-Labour swings since records began.
The Conservatives had a bad night - The Conservatives suffered heavy losses, with over 470 councillors lost, representing almost half of the seats they were defending. The party held fewer than 515 councillors overall, fewer than the 522 council seats won by the Liberal Democrats. Conservative Party Chairman Richard Holden acknowledged the disappointing results but maintained that Rishi Sunak would remain as prime minister.
The Lib Dems won more councillors than the Conservatives - The Liberal Democrats made significant gains, securing 104 new councillors and winning control of Dorset and Tunbridge Wells councils. The party's successes extended to traditionally Conservative strongholds in southern England, known as the "blue wall". Lib Dem leader Sir Ed Davey expressed satisfaction with the results, attributing the success to voters' dissatisfaction with the Conservatives.
The Greens had a good night - The Green Party also celebrated progress, winning over 60 seats. They performed particularly well in Bristol, where they fell just short of taking overall control, winning 34 of the 70 seats available. The Greens now hold a record number of councillors across England as a result of the elections.
Labour wins in mayoralties - Labour secured victories in the West Midlands and London mayoral races, with Richard Parker defeating incumbent Tory Andy Street by a narrow margin in the West Midlands and Sadiq Khan securing a third term in London.
What this could mean for procurement and bidding
Based on the local election results showing gains for Labour, the Liberal Democrats, and the Greens, there does appear to be a leftward shift in many councils across England. This political trend could significantly impact public procurement practices and the bidding landscape for businesses. Here are some key implications to consider:
A greater emphasis on localism and supporting SMEs – With Labour and the Liberal Democrats generally placing a strong emphasis on localism, we may see councils increasingly prioritising procurement from small and medium-sized enterprises (SMEs) in their local areas. This "buy local" approach aims to support the local economy, create jobs, and keep money circulating within communities. For SMEs, this could mean more contract opportunities as councils break up larger contracts into smaller lots that are more accessible to local firms. Councils may also implement policies and targets to award a certain percentage of contracts to SMEs. However, smaller businesses will need support and guidance to successfully compete for public sector contracts.
Increased focus on social value and community benefits - The concept of "social value" - generating positive social, economic and environmental impacts through procurement - has gained significant traction in recent years. With left-leaning parties in control of more councils, we can expect an even greater emphasis on social value in tendering and contract award decisions. Bidders will likely need to demonstrate how their goods, services or works will deliver wider community benefits beyond just the core contract deliverables. This could include commitments to local employment and skills training, engaging social enterprises and voluntary organisations in the supply chain, promoting equality and diversity, and supporting environmental sustainability. Councils may score bids on social value criteria and make it a key factor in supplier selection.
Potential challenges for some larger suppliers - The localism agenda and push to contract with SMEs could make it harder for larger, national suppliers to win council business in some cases. Major firms may need to rethink their bidding approach and find ways to partner with smaller local companies or deliver impactful social value initiatives to remain competitive. However, councils will still need a mix of small and large suppliers to meet their diverse procurement needs. And the increased focus on social and environmental factors could benefit progressive larger businesses that have strong corporate social responsibility programs and ethical supply chains.
Importance of monitoring the policy landscape - With the political shift in councils, businesses will need to closely track changes in procurement policies, social value frameworks, and tender requirements in the local authority areas where they operate or wish to bid for contracts. Understanding the priorities and expectations of the ruling parties will be crucial to developing winning bids. Firms should engage proactively with councils, perhaps through supplier events or consultations, to understand their evolving needs and objectives. Building relationships with elected members, procurement officers, and local stakeholder groups can provide valuable intelligence to inform bid strategies.
What this might mean for the upcoming general election
The local election results suggest that Labour is well-positioned for a victory in the upcoming general election, with the question being the scale of their win. Some projections based on the local election vote share suggest Labour could face a hung parliament, while others predict a landslide victory. Regardless, Labour is likely to form the next government.
Conclusion
The local elections have provided a clear indication of the current political landscape in England. With significant gains for Labour, the Lib Dems, and the Greens, and heavy losses for the Conservatives, the results point towards a potential shift in power at the upcoming general election. This leftward trend could also have implications for procurement and bidding practices, with a greater emphasis on localism and social value. As the country looks ahead to the general election, the local election results offer valuable insights into what the future may hold.