Burnham to overhaul procurement in favour of social value

“For too long, UK public procurement policy has been based on chasing cut-price deals around the world rather than helping our own British suppliers become more stable and competitive. No more…” said Makerfield MP Andy Burnham in his policy speech on Monday in Manchester – his first since Keir Starmer announced his resignation.

The former Greater Manchester mayor – who could be prime minister in just three weeks’ time – promised to overhaul procurement in front of an enthusiastic crowd at the People’s History Museum.  

“We will make sure that all public contracts are subject to proper social value weighting, and we will do that to make sure that British-based companies are in a better position to win those contracts,” Burnham said. 

Burnham shared his vision for the next ten years with an emphasis on the decentralisation of power, devolved decision-making and equivalent living standards across the country – inspired by German fiscal equalisation law.

Plans discussed include the creation of No 10 North, an extension of the prime minister’s office based in Manchester, described as the “nerve centre of a rewired Britain” with responsibility for urban regeneration.

The northern outpost, based in the future Manchester Digital Campus in Ancoats, would also be responsible for delivering on the reform of essential utilities including infrastructure and housing, the reindustrialisation of towns and procurement reform.

The emphasis on social value weighting and local suppliers is reminiscent of the “Preston Model” – an experimental procurement strategy in Lancashire that has seen positive results and gained interest around the world. 

Although Burnham did not name the Preston Model in his speech, his admiration for the model is no secret. In a video posted on X in April 2026, Burnham said: “We don’t always admit this in Manchester, but we’ve been inspired by Preston and everything that [council leader] Matthew Brown has done, leading the Preston Model. So Preston Labour, you’ve definitely led the way.” 

Under the Preston Model, public institutions such as councils, hospitals and universities are encouraged to spend money with local businesses, cooperatives and social enterprises. The model is said to reduce ‘economic leakage’ – where money leaves the local area. The procurement practice has been said to create jobs and strengthen local economies without relying heavily on external investment.

The Lancet medical journal noted in 2023 that since the introduction of the model, rates of depression and the prescribing of antidepressants have fallen in Preston while wages and life satisfaction had increased.

On procurement reform, Burnham said: “This change is essential given the need to build our own resilience in places across the country in an increasingly uncertain world.” 

In the speech, Burnham doubled down on his “place first, party second” touchstone – a phrase he’s often repeated to underline his commitment to devolution. Burnham said: “Place-based collaboration is the new operating principle for UK plc.”

Burnham also said he would consolidate public and private investment on a place-based level and help all areas establish Good Growth Funds to trigger “good growth in every British postcode.” 

The UK’s first Good Growth Fund was established in Greater Manchester by the council in 2025. Since then, the £2bn fund has been invested into homes, infrastructure and major developments. 

All recipients of the Greater Manchester Good Growth Fund must sign up to a series of commitments, such as to create new apprenticeships and T Level placements, become members of the Good Employment and Good Landlord charters, include local suppliers in the delivery of projects and build developments to high environmental standards.

Burnham also said he would enshrine into law that all places in the UK should have equivalent living standards and that inspired by German law, which redistributes tax revenue topped up by federal grants to ensure that all municipalities meet a basic equivalent standard for healthcare, education, public transport, community services and infrastructure. 

The Makerfield MP also said as Prime Minister he would launch the biggest council housing building programme since the post-war period, cut business rates to revitalise high streets and enact a Finland-inspired Housing First strategy nationwide to prevent homelessness.