ACCORDING to recent figures more than £13 billion was generated for the economy from public sector procurement spend in Scotland between 2021 and 2022.

Official statistics released by the Scottish Government showed £16 billion in total was spent on procurement in the year, with £13.8 billion for economic activity.

It contributed to 130,000 full-time equivalent jobs and around £7.5 billion to GDP (gross domestic product).

Figures covering the year 2021-2022 showed 6359 regulated contracts were awarded by the 128 reporting bodies, up from 5421 across 118 public bodies the previous year.

READ MORE: Brexit: New checks to cost businesses £2 billion, report finds

Tom Arthur, public finance minister, said: “As Scotland grappled with the impact of the pandemic as well as the cost-of-living crisis, it is encouraging that these figures show how public sector purchasing power helped contribute billions to the Scottish economy and supported thousands of jobs.

“We are absolutely committed to continuing work to improve our public services and this report demonstrates how public sector procurement can act as a driver to generate a range of positive economic, social and environmental benefits.

“The commitment from public bodies to deliver responsible procurement which benefits businesses, employees and communities in Scotland is clear.

“I welcome this report and the important role procurement plays to make Scotland a better place to live, work and do business.”

A breakdown of the figures showed small or medium-sized enterprises (SMEs) in Scotland received £4.2 billion.

And 43.3% of spend, £3.8 billion, was with suppliers based within the local area of the purchasing body.