The UK government announced on 5 August 2026 that bidders for public contracts would be assessed more heavily on commitments to local skills, jobs and opportunities for young people. Under the plan, the weighting for community benefits would double from 10% to 20% on contracts worth £5m or more. The rules would apply to central government procurements, taking effect from 1 January 2027 after detailed technical guidance in the autumn, the Cabinet Office said, describing the contract market as worth £90bn a year.

Simplified requirements would apply only above a raised threshold of more than £1 million, which the government said would typically keep them away from work smaller firms and local social enterprises bid for. Bidders could earn extra credit for local jobs paying above the legal minimum and for training such as 45 days of work experience, with specific support for young people not in education, employment or training, care leavers and people with long-term health conditions. For major contracts, departments would set a key performance indicator and publish annual progress reports.

First Secretary of State Louise Haigh said every pound of taxpayer money should benefit local communities. The announcement cited public sector procurement rising from £288.7bn in 2019/20 to £394.8bn in 2024/25. It also pointed to the National Cloud Infrastructure Programme and a West Midlands initiative, 3,000 Futures, developed with the region's mayor.