Introduction: Rethinking School Spending – Why Local Matters
Schools across the UK face a growing financial crisis. Budget cuts, inflation, and outdated procurement models have left many struggling to afford even the most basic classroom essentials. According to the Institute for Fiscal Studies (IFS, 2023), real-term spending per pupil in England has fallen by 9% since 2010, forcing schools to cut extracurricular programs, reduce classroom resources, and increase teacher workloads.
At the same time, local businesses are struggling too. The Federation of Small Businesses (FSB) reports that one in three small businesses in the UK is at risk of closure due to rising operational costs and lack of sustainable contracts.
But what if schools and local businesses could solve each other’s problems?
At LocaeRise, we believe that everyday school purchases can drive economic growth while meeting the needs of students and educators. Instead of relying on large, corporate suppliers, schools can redirect their spending to local vendors, keeping money within communities while unlocking better pricing, tailored services, and long-term support.
This isn’t just a theory—it’s already happening.
- A school in Manchester switched to a local stationery supplier and reduced procurement costs by 20%, while the vendor gained a steady long-term contract.
- A group of schools in Scotland partnered with local businesses for school lunch supplies, ensuring healthier meals while cutting delivery costs.
- A council-led initiative in London prioritized local procurement, injecting over £500,000 back into small businesses.
Yet, many schools still struggle to make the switch.
In this blog, we’ll explore:
✔️ Why supporting local businesses isn’t just about ethics—it’s about financial sustainability.
✔️ How schools can cut costs, create new funding streams, and improve efficiency by shopping local.
✔️ The role of technology in making local sourcing easier and more cost-effective.
Supporting local isn’t a sacrifice—it’s a smart, sustainable choice that benefits schools, businesses, and the entire community.
Let’s break down why buying local matters more than ever for schools—and how to start making the shift today.
The Growing Case for Local Procurement in Schools: Past, Present, and Future
For decades, schools have relied on centralized procurement models, often sourcing supplies from large, corporate vendors that offer economies of scale. This shift began in the late 20th century, as governments prioritized cost-efficiency and bulk purchasing agreements over community-driven spending. However, while this model provided short-term savings, it also led to severe long-term consequences—including a decline in local business support, supply chain vulnerabilities, and reduced flexibility in procurement.
A Changing Landscape: The Economic & Political Context
Fast forward to today, schools in the UK are facing one of the worst funding crises in modern history. Inflation has driven up the cost of supplies by 15% over the past two years, meaning that schools are paying more for less.
- Funding Shortfalls: Many schools are being forced to cut back on extracurricular activities, mental health programs, and essential classroom materials.
- Rising Operational Costs: The cost of energy, transport, and maintenance has skyrocketed, putting further strain on school budgets.
- Government Transitions & Policy Uncertainty: The incoming UK government is expected to reassess school funding allocations, but experts predict that funding increases (if any) will be incremental rather than transformational.
However, on the other hand, schools are starting to rethink how they allocate their budgets—and many are realizing that supporting local businesses isn’t just an ethical choice, it’s a financially strategic one.
The Financial Benefits of Buying Local: A Win-Win for Schools & Businesses
Historically, large-scale procurement models have been justified by the promise of cost savings—but is that still true today?
A growing body of research suggests otherwise.
A study by the Federation of Small Businesses (FSB) found that every £1 spent with a local business generates £2.50 for the local economy. Additionally, schools that shift even 20% of their spending to local vendors often see a 10-15% reduction in costs due to:
✔ More flexible pricing models – Local vendors are more likely to offer custom payment plans and bulk discounts than large corporations.
✔ Faster turnaround times – Instead of waiting weeks for international shipping, schools can get supplies within days from nearby businesses.
✔ Stronger customer service – Local vendors prioritize long-term relationships, providing personalized support that big suppliers rarely match.
On the other hand, there are challenges to buying local, such as:
- Fewer product options – Some specialized equipment may still need to be sourced from national or global suppliers.
- Perceived higher costs – While local businesses may have higher per-unit costs, the overall savings from reduced shipping and bulk purchases often offset this.
Example: A group of schools in Scotland formed a local purchasing cooperative, allowing them to negotiate better pricing with small vendors. The result? A £100,000 annual savings on classroom essentials while keeping money within the local economy.
The Role of Technology: AI, Smart Procurement, and the Future of Local Sourcing
The next big shift in local procurement will be driven by technology.
AI-Driven Procurement Platforms
- AI-powered tools can automate local vendor sourcing, ensuring that schools get the best deals without extra admin work.
- Platforms like LocaeRise are already using AI-powered insights to match schools with reliable, cost-effective local suppliers.
Digital Marketplaces for Local Vendors
- Schools are moving away from traditional tendering and embracing digital marketplaces that prioritize local businesses.
- LocaeRise enables vendors to sell directly to schools, removing the bureaucratic hurdles that often prevent small businesses from securing contracts.
The Power of Data in Local Spending
- Schools that track their spending using data analytics tools can measure the true impact of local procurement—identifying areas where buying local leads to long-term cost savings.
Future Outlook: With the rise of AI and data-driven decision-making, schools will increasingly shift toward hybrid procurement models, balancing local sourcing with strategic bulk purchases.
1. The Economic Impact of Supporting Local Businesses
Why Local Spending Matters for Schools and Communities
Schools hold immense purchasing power, yet many rely on large corporate suppliers rather than supporting local businesses. Redirecting even a fraction of school spending to local vendors can have a transformative impact on regional economies, job creation, and long-term financial stability.
According to the Federation of Small Businesses (FSB, 2023), every £1 spent with a local business generates £2.50 for the local economy. However, in the past two decades, schools have moved toward centralized procurement models, favoring large-scale suppliers that offer bulk pricing but strip resources away from local economies.
At LocaeRise, we believe that schools can serve as economic anchors, revitalizing small businesses, job markets, and community wealth—but only if they prioritize local procurement.
The Historical Shift Away from Local Procurement
Historically, schools sourced supplies locally, working with independent bookshops, uniform suppliers, and regional food vendors. However, starting in the late 1990s and early 2000s, procurement models became increasingly centralized.
✔️ New public sector procurement policies encouraged bulk contracts with national and international suppliers.
✔️ Schools prioritized cost-cutting over local investment, often overlooking hidden costs like long-term service reliability.
✔️ E-commerce platforms like Amazon made it easier—but not necessarily cheaper—for schools to buy supplies.
On the surface, centralized procurement seemed cost-effective. However, as budgets tightened, schools became dependent on a handful of large suppliers, leaving them vulnerable to supply chain disruptions, price hikes, and reduced service flexibility.
📉 Example: In 2022, UK schools faced delays of up to 12 weeks for basic classroom supplies due to global supply chain issues, while local vendors had stock available immediately.
🛠 Future Change: The new government and local councils are pushing for more decentralized procurement models. Schools are now being encouraged to source supplies regionally, ensuring greater economic stability and resilience.
The Future: Why Supporting Local Businesses is More Important Than Ever
1. The New Government’s Push for Local Economic Growth
The UK’s new leadership is focusing on “levelling up” local economies, which includes redirecting public sector spending to UK-based businesses.
- Government tenders are prioritizing local vendors, giving schools incentives to buy locally.
- Schools that purchase from regional suppliers may receive tax benefits or additional funding.
However, challenges remain.
- Not all schools have the infrastructure to source locally—many rely on existing procurement contracts.
- Some local businesses lack digital ordering systems, making online purchasing harder for schools.
📢 LocaeRise is addressing these challenges by creating a seamless online marketplace where schools can buy locally-sourced products as easily as they would from Amazon, but with more impact.
2. AI & Tech Are Changing How Schools Buy Supplies
While supporting local vendors is crucial, schools also need efficiency. AI-driven procurement platforms are helping:
- Automate supplier matching – AI can recommend local vendors that match a school’s purchasing needs.
- Optimize spending – Schools can track historical purchasing patterns and reduce waste by buying smarter.
- Ensure compliance – New procurement laws require schools to prioritize ethical and sustainable sourcing. AI tools can flag products that don’t meet these standards.
Example: Schools using AI-powered procurement tools have seen a 15% reduction in overspending, allowing them to reinvest savings into better educational resources.
🚀 The Takeaway:
✔️ Buying local doesn’t mean outdated methods. With AI and smart procurement tools, schools can support local businesses without losing efficiency or cost-effectiveness.
3. Supply Chain Disruptions Prove the Need for Local Sourcing
The COVID-19 pandemic and Brexit exposed vulnerabilities in global supply chains, causing:
- Increased shipping costs (some products saw price increases of over 35%).
- Delays in essential school supplies (including laptops, stationery, and food services).
- Limited options for emergency purchases.
📉 Lessons learned:
- Schools that depended on overseas suppliers struggled to secure products.
- Schools that had relationships with local vendors were able to receive deliveries faster and at lower costs.
📢 By sourcing locally, schools can reduce risks and ensure more reliable service.
What This Means for Schools & Local Vendors
🎓 For Schools:
✅ Cost Savings in the Long Run – While some local products may seem more expensive initially, the hidden costs of bulk suppliers (e.g., shipping fees, delayed service, less personalized support) often make them more expensive.
✅ More Reliable Service – Schools can build long-term relationships with suppliers who genuinely care about their needs.
✅ Better Student & Community Outcomes – Every local purchase reinvests in the community, supporting jobs and economic growth.
🛍 For Local Businesses:
✅ New Market Opportunities – Schools spend billions each year—redirecting even a small percentage creates significant revenue for local suppliers.
✅ Stronger Customer Loyalty – Schools need recurring supplies—meaning consistent, long-term contracts for vendors.
✅ Alignment with Government Policies – Businesses that prioritize ethical, local, and sustainable sourcing will see more government tenders and grants.
Conclusion: The Power of Local School Spending
The shift toward local procurement isn’t just a feel-good initiative—it’s an economic necessity. Schools have the power to strengthen their local economies, support small businesses, and improve service reliability simply by changing where they buy their supplies.
📢 At LocaeRise, we’re making it easier for schools to shop locally—without sacrificing convenience or cost-efficiency.
✔️ Want to explore local vendors for your school?
✔️ Are you a vendor looking to connect with schools?
