Relationships between local public spending, employment and wages within local authorities in England - a longitudinal ecological analysis

Abstract

Background Utilising public procurement to redirect wealth back into the local economy has potential to generate local economic benefits, however evaluative evidence is needed to understand these dynamics. Methods We conducted a longitudinal ecological analysis to examine associations between local spending and economic outcomes within English local authorities between 2016 and 2020. Results We found that increasing trends in local authority spending per capita on local suppliers were associated with increasing trends in employment rates and wages at the 20 th percentile. Conclusions Our findings indicate that local authorities could increase local employment rates and earnings for lower paid workers by spending more on local suppliers.