Forum Topic

Council Supporting or Destroying Local Businesses?

I was in a local printers at the weekend which I use reasonably regularly. Just to make conversation I asked the guy behind the counter how was business. He said times were really tough and that one of the main reasons was that he felt he was being undercut by Hammerprint the Council's print and design arm which is now offering out its services. He claimed that the guaranteed work they got from the Council allowed them to undercut the rates of commercial firms. They are heavily promoted in the Council's Newspaper (presumably not paying the same rate a proper business would). Ironically, H&F News also includes the slogan 'Supporting Local Businesses' but the reality seems to be that the Council is doing the opposite. Aren't there rules to stop them operating in this way?

Ellen Kearney ● 5269d1 Comments

My understanding is that local authorities have been given more leeway over recent years to set up new operating entities which can take on private sector business. The hope was that these revenues would help to fund services or bring down taxes but reports, including some in Private Eye, seem to indicate that the deregulation has allowed Council employees to set up operating entities that are heavily cross-subsidise to compete with existing businesses and then they pay themselves large bonuses from their profits. I should stress there is nothing to indicate this is what is happening at Hammerprint.

Paul Corcoran ● 5212d