EU brings fairer and easier rules for local businesses

MEPs have approved new rules that will deliver a fairer deal for local businesses and taxpayers when public contracts, including those for water, energy, postal and transport services, are put out to tender.

The move follows a campaign by North East construction firms to highlight the difficulties faced by small and medium firms in winning government contracts.

The new rules will mean that rather than prioritising firms that offer the lowest price, local authorities will be able to consider other factors such as the quality and durability of the service provided. There will also be an expectation that contracts be spread between multiple, smaller firms.

Liberal Democrat MEP for the North East Fiona Hall met with bosses from Surgo, Tolent and the Esh Group on the issue and has backed the new rules. Fiona said:

"When it comes to fulfilling public contracts we all want to see quality services coupled with value for money. Only giving contracts to the lowest bidder, with no regard for quality, wasn't a sensible approach. Of course price should be a major factor but we need to ensure work is done to a high standard that will last. These new rules will deliver better services and better use of taxpayers' money.

"And by creating an expectation that contracts will be broken down and awarded in constituent parts, we will open up opportunities to smaller firms that currently fall below the minimum turnover threshold."

The new rules will also reduce red tape for firms bidding for public procurement contracts, including by making it easier to apply online with only the winning bidder required to provide original documentation.