Wakefield-based YPO, the UK’s largest publicly owned buying organisation, has delivered £7.9 million in dividends to local authorities across the country despite unprecedented public sector challenges in 2016.
As a result of using centralised contracts to deliver essential services such as energy solutions, HR, highway and food services in 2016, YPO’s member and associate member authorities all receive a share of profits which are paid back to them to invest in local services.
The figures from YPO, released alongside the organisation’s latest annual report, demonstrate a commitment to drive economic growth at a local level.
YPO’s managing director Simon Hill, said, “The marketplace is tough with councils and schools facing ever more challenging financial pressures. Local authority expenditure was further reduced in 2016 and spend in the education market was down six-eight per cent.
However, despite this, YPO has performed well. More and more public authorities are seeing the value of working with YPO as we continue to increase our membership. We are also increasing the range of frameworks offering compliant, efficient and good value routes to market when needed most.
“An increase in our market share also means we can continue to invest in our future growth as a profitable organisation, producing a surplus which is returned to the public purse. At YPO we are proud to deliver a public service which helps the public sector find efficiency and value for money in everything they do.”
YPO has also informed its members of the social value they have generated in their regions. In 2015/2016, the average social value generated for each member was £410,457 (total 2015/6 inc. £25,858,832). This figure represents how local suppliers are developing socially, environmentally and economically and takes into consideration the creation of jobs, maintenance of active, healthy and resilient communities, and promoting a cleaner and greener environment.
The dividends come as YPO also sees an increase in member authorities – YPO now has 63 member organisations across England, reinforcing its position as the largest public sector buying organisation in the UK.