YPO delivers £9 million public sector dividends
Wakefield-based YPO has delivered £9.2 million in dividends to local authorities across the country. As a result of using centralised contracts to deliver essential services such as energy solutions, HR, highway and food services in 2015, YPO’s member and associate member authorities all receive a share of profits which are paid back to them to invest in local services.
Centralised framework agreements support the delivery of vital everyday services and products by giving public sector organisations access to pre-agreed, legally compliant local suppliers.
YPO’s managing director Simon Hill, said: “At YPO we strive to deliver greater efficiencies in order to help the public sector achieve more for less. With further reductions in local authority funding and an on-going pressure to find efficiency and value for money in every part of the public sector, we’re proud to deliver a public service and produce a surplus which is returned to the public purse.
As our figures demonstrate, using centralised contracts to deliver essential services can generate considerable savings for public authorities, producing significant efficiency benefits and demonstrating real value for money. Looking ahead, we’ll continue to refine our contracts in line with the changing requirements of our customers and grow our capacity to help them deliver in an increasingly challenging environment.”
Further to authorities receiving a combined total of over £9 million in dividends, YPO framework contracts contributed almost £140 million to local economies across the country, through spend with local suppliers, including a growing number of small businesses across member and associate areas.
The figures, released alongside the organisation’s latest annual report, demonstrate YPO’s commitment to drive economic growth at a local level by encouraging more small businesses to tender for procurement frameworks.
In addition, this year YPO has also informed its members of the social value it has generated in their regions. This social value, which will now be a regular feature of the annual member benefits statement, represents how local suppliers are developing socially, environmentally and economically. The amount of social value generated for each member takes into consideration the creation of jobs, maintenance of active, healthy and resilient communities, and promoting a cleaner and greener environment.
Simon Hill said: “This year we’ve started to work with our supply chain to collect information on the amount of social value being generated within our member and associate member areas. Social value is a new concept for some of our suppliers, so we’re encouraged by the initial response with 27 suppliers submitting social value statements. As such, we’re committed to making this an on-going way of working and will be registering suppliers, securing social value statements and sharing the results with our members in the future.”
In 2015, the average social value generated per supplier was £751,380.
The dividends come as YPO also sees an increase in member authorities – YPO now has 63 member authorities across England, reinforcing its position as a national procurement expert.