The Federation of Small Businesses North-East (FSB) will form part of a Government review into ways to transform how taxpayers’ money is spent on public services.

Ministers are looking at the Social Value Act, which requires public commissioners to think about whether they can secure added economic, social or environmental benefits for their local area when buying services.

It applies to service contracts over the EU threshold, at the pre-procurement stage.

However, the review, led by Lord Young, the Prime Minister’s Adviser on Enterprise, with FSB support, will determine if it should be widened.

The review team is expected to deliver their findings early next year.

Ted Salmon, FSB North-East regional chairman, said: “I’m delighted we have been asked to sit on this review team.

“The Social Value Act will help small businesses and social enterprises win more contracts from the public sector across the North-East.

“We have led the way in ensuring this is happening in the region through our work with Durham County Council to demonstrate the practical ways local authorities can use the act to achieve this.

“We look forward to working with the review team to ensure we embed this right across the country.”

Lord Young added: “The Government has been facing growing calls to extend the Social Value Act and I am delighted this review will give us the opportunity to fully consider those ideas.”