Winning a local council contract can be a game-changer for any business, especially for SMEs. Not only does it provide steady, long-term income, but it also builds credibility and can open the door to future work with other authorities. For councils, partnering with businesses brings innovation, supports local jobs, and improves services for communities. money.co.uk analysed tender data from 358 UK councils between July 2023 and July 2025 to identify where the best opportunities lie. Here’s what business owners need to know.

Councils creating the most opportunities
Some councils are much more active in tendering than others. By comparing tenders per capita and per business, the research highlights which areas are most promising.

Platinum Tier Councils
The platinum group includes the five councils with the highest tendering activity. These represent the best opportunities for businesses.

Westmorland & Furness
Population: 228,187
Tenders per 100,000 residents: 183
Tenders per 1,000 businesses: 36.5

Herefordshire
Population: 189,890
Tenders per 100,000 residents: 177
Tenders per 1,000 businesses: 31.3

Cumberland:
Population: 276,876
Tenders per 100,000 residents: 174
Tenders per 1,000 businesses: 43.0

Milton Keynes
Population: 298,270
Tenders per 100,000 residents: 147
Tenders per 1,000 businesses: 35.2

Haringey
Population: 262,895
Tenders per 100,000 residents: 146
Tenders per 1,000 businesses: 29.8

Business takeaway: Councils like Westmorland & Furness and Cumberland issue more than four times the national average in tenders per resident, giving SMEs more entry points. For example, Westmorland & Furness’ £200m Capital Works Framework offers major opportunities in highways, property, and regeneration.

Gold Tier Councils
Ten councils make up the gold tier, each offering strong opportunities, particularly in transport, infrastructure, and local services.

Leicester
Tenders per 100,000 residents: 136

Westminster
Tenders per 100,000 residents: 131

Blackpool
Tenders per 100,000 residents: 128

Ipswich
Tenders per 100,000 residents: 128

Derry & Strabane
Tenders per 100,000 residents: 125

Sandwell
Tenders per 100,000 residents: 122

Bath & North East Somerset
Tenders per 100,000 residents: 120

West Dunbartonshire
Tenders per 100,000 residents: 119

Cambridge
Tenders per 100,000 residents: 116

Isle of Wight
Tenders per 100,000 residents: 109

Business takeaway: Councils like Blackpool, Sandwell, and West Dunbartonshire have particularly high tenders per business, meaning competition could be lower- ideal for SMEs. Leicester also stands out with more than 500 tenders, including transport projects such as the £17.6m station revamp.

Silver and Bronze Tier Councils
Silver tier councils maintain steady tender activity. Nottingham (350 tenders, 106 per 100,000 residents) and Chesterfield (111 tenders, 106 per 100,000 residents) are standouts. Nottingham in particular has issued large highways contracts worth up to £30m.

Bronze tier councils, such as Lincolnshire (466 tenders) and Northumberland (196 tenders), issue fewer tenders per capita but still present opportunities. In these areas, competition may be lower, making it easier for SMEs to win contracts.

The biggest contracts in the UK
Some councils are responsible for contracts worth billions. These large frameworks often create opportunities for smaller businesses as subcontractors or suppliers.

1 – Wiltshire
A350 Chippenham Dualling Scheme – Construction: £21.2bn

2 – Hampshire & Southampton
Adult Care & Nursing Homes Framework – Health: £7.3bn

3 – West Midlands (13 councils)
Children’s Residential Care Framework – Health: £4.9bn

4 – Cornwall
Care Home Services- Health: £4.8bn

5 – Hampshire & Devon
Southern Construction Framework – Construction: £4.5bn

Business takeaway: Even if you can’t bid for contracts of this size, these frameworks often require a wide supply chain- creating room for SMEs to partner with larger firms.

Sectors with the most opportunity
Over the last two years, councils issued:

Construction – 22,150 tenders (£374bn)
Health – 19,185 tenders (£740bn)
Transport – 17,695 tenders (£90bn)
Professional Services – 10,082 tenders (£210bn)

Business takeaway: Health leads in value, with over £740bn invested in two years, while construction dominates in volume. SMEs in these sectors should prioritise council tenders.

Tips to get tender-ready:
Keep accounts up to date – councils will request recent financial statements.
Choose the right business bank account – strong reporting tools make pre-qualification easier.
Monitor cash flow – councils need confidence you can deliver.
Showcase experience – case studies and testimonials build trust.

Final word
UK councils are investing heavily across sectors, with billions in tenders up for grabs. Platinum and Gold tier councils, in particular, provide fertile ground for SMEs seeking to grow. Whether in construction, healthcare, or professional services, businesses that prepare financially and strategically stand the best chance of success.

• Image from Kier Group project in Luton – Dunstable Hospital