The Mayor of London Sadiq Khan has revealed £1.3bn will be pumped into the capital’s small businesses over the next five years via contracts with a group of major organisations including TfL and NHS London.
Sixteen of London’s biggest organisations – known collectively as the Anchor Institutions’ Network – have pledged to spend up to 30 per cent of their annual procurement on small businesses based in the capital, Khan said.
Members of the group also include the Greater London Authority, the Metropolitan Police and the University of London.
Khan says the fresh $1.3bn commitment to the capital’s small businesses will help shore up jobs and drive an economic rebound.
“I have been working side-by-side with some of London’s largest institutions in this unprecedented partnership, ensuring that the collective impact of our procurement, hiring and estate decisions will contribute directly towards reducing poverty and inequality in our city,” he said.
“I want to thank the organisations involved for their commitment to serving our great city and I hope that the leadership shown by the Metropolitan Police, TfL, NHS London, the University of London and all the other Anchor Institutions will encourage other organisations to join us in setting ambitious targets to help support a fair, green recovery from the pandemic.”
NHS London has pledged to ramp up its annual spend with SMEs in London from nine per cent to 20 per cent, marking a jump in over £312m by the end of 2023.
The announcement comes amid a major spat between Khan and the government over the financing of TfL and follows warnings from the Mayor that TfL supplier contracts are at risk.
Khan visited a TfL train factory last week and said that without sufficient capital investment from government, “future contracts with regional suppliers are at risk”.