Manchester’s local multiplier analysis

More bang for your buck!

Manchester City Council have been leading the way on how to use existing public expenditure to maximise local impact through the multiplier effect. They are actively using their procurement policy to more effectively target their existing expenditure on goods and services in order to achieve wider social benefits.

The first stage was a mapping exercise undertaken by the Centre for Local Economic Strategies (CLES) to better understand the geography of public sector resources across Manchester City. This mapping exercise, using LM3 methodology, enabled the council to understand how much of their expenditure was retained locally and the proportion that leaked out of the city region. The council are now developing a range of procurement initiatives which aim to extract more value from public expenditure, for example, in the extension and refurbishment of their council offices, Manchester City Council developed a social benefit clause with their main contractor which provided apprenticeships for local school leavers.

Key features of this approach

This is an example of mainstreamed community economic development which demonstrates:

  • Resourcefulness: Using the public money that is being spent and making it work harder to achieve social as well as economic benefits.
  • Procurement as a creative process: Changing perceptions about procurement and viewing it as a creative process rather than simply a bureaucratic function.

To learn more

More information is available from the CLES Website.

Back to Case Studies