Serco’s work across public services generated an estimated £108 million boost to the North West economy last year, highlighting the wider economic value that can be created when public procurement supports regional supply chains alongside service delivery.

The figure, reported by the Lancashire Telegraph, forms part of research into Serco’s wider economic contribution. The company provides services to governments and public-sector organisations across areas including defence, justice, immigration and citizen services, meaning its procurement activity reaches well beyond the organisations directly awarded contracts.

For National Procurement teams, the significance lies in what happens after a major contract is awarded. Serco’s supply chain supports businesses across the regions where it operates, creating opportunities for local suppliers to participate in the delivery of essential public services. According to Serco, its North West supply chain supports around 1,530 additional jobs, while its wider UK supplier network includes thousands of small and medium-sized enterprises.

Serco’s latest economic-impact analysis provides further context. The company says it spent £1.18 billion with UK suppliers in 2025, with SMEs accounting for 58% of its supplier base and 30% of supplier spend. Across the UK, its operations and supply chain supported 39,004 jobs and generated £2.01 billion in gross value added, according to independent analysis by Bradshaw Advisory.

The figures demonstrate how procurement decisions can have an economic footprint extending well beyond the original contract. Supplier selection, regional engagement and opportunities for SMEs can influence where investment, employment and specialist capability are created, particularly when large public-service contracts run over several years.

Serco’s model is also relevant to the growing focus on social value in public procurement. Rather than measuring contracts solely through cost and service performance, procurement strategies can consider how spending contributes to employment, local business growth and supply-chain resilience. Serco says its UK supply-chain activity generates a further £0.89 elsewhere in the economy for every £1 it spends, based on the Bradshaw analysis.

For the sector, the North West figures reinforce the potential for public procurement to act as an economic development tool as well as a purchasing mechanism. Large service contracts can create a platform for SMEs, regional suppliers and local employment, giving procurement teams an opportunity to connect commercial decisions with wider economic outcomes while continuing to focus on quality, value and effective public-service delivery.

Source: Lancashire Telegraph / Serco / Bradshaw Advisory