The fifth annual report on procurement activity in Scotland shows that in 2021-22 public sector procurement spend during the year reached £16bn with £8.9bn spent in Scotland.

Small or medium size enterprises (SMEs) in Scotland received £4.2bn. This equates to 55p of every pound spent with suppliers in Scotland, up from 51p in every pound the year before. In total, 48.9% of all public procurement spend in Scotland – £4.3bn – was with suppliers based in Scotland’s 60% most deprived areas compared with 48.7% – £3.9bn – the year before.

Public finance minister Tom Arthur 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.”