Companies supplying Wigan Council not complying with modern slavery laws

The JPIMedia Investigations Unit analysed data published by TISCreport, which provides supply chain transparency tools to public sector bodies.

An in-depth look at modern slavery by the JPIMedia Investigations Unit reveals more than two-thirds of Great Britain’s town halls have non-compliant suppliers.

The vast majority of the council’s suppliers do abide by the law, with 173 of the 176 firms which have to comply providing a statement.

That gives the town hall a compliance rate of 98.3 per cent, which is above the national figure of 96.5 per cent.

However, the JPIMedia Investigations Unit has found the problem of non-compliance is widespread, with 254 of the 373 councils featured using companies with no statement.

The Government has warned that public bodies and businesses must be “more vigilant than ever” as it looks to tighten up gaps in the law.

Wigan Council strongly defended the processes it uses to tender work from suppliers. However, it said contracts are also awarded through regional and national frameworks where the authority does not have as much oversight.

It pointed to the above-average compliance rate and said the council asks for firms which come under the legislation to supply a web link to modern slavery statements when evaluating tenders.

Penny McGinty, assistant director of corporate contracts and assets at Wigan Council, said: “Wigan Council is committed to ensuring that it and its suppliers work ethically in line with legislation.

“The council’s procurement processes are robust and tenders are evaluated on specific cost, quality and social value, which is published at the start of each tender process.

"Bidders who do not meet the required quality standards are not awarded contracts.”

The 2015 Modern Slavery Act requires companies with an annual turnover of at least £36m to publish annual statements outlining what steps they take to prevent modern slavery in their business or supply chains and publish it prominently on their website.

The Government has faced calls in recent years to expand the scope of the slavery legislation beyond commercial organisations to include public bodies such as councils with a budget of at least £36m.

At least 136 councils have voluntarily published statements. Wigan Council is not among them, but the town hall said it is in the process of creating one.

In September, the Home Office announced it would do so, “when parliamentary time allows”, stating it presented an “unparalleled opportunity to harness” the £250 billion annual public sector spend “to eradicate modern slavery in supply chains”.

It will also launch an online central register of modern slavery statements for the public – a resource that has only been provided by non-profits until now.

The Local Government Association (LGA) says “more powers and certainty” for councils when the Modern Slavery Act is updated would be welcome.

Nesil Caliskan, chair of the LGA’s safer and stronger communities board, said: “The Government’s commitment to setting up an online registry and enforcement body will hopefully reduce non-compliance and a significant number of councils have demonstrated their own awareness and ethical leadership by voluntarily producing their own transparency statements.”

The Government has published its own modern slavery statement, and will require all ministerial departments to publish one from this year.

The Home Office said there are mechanisms that allow councils to take modern slavery into account in procurement. A spokesperson said its “ambitious package of changes” would strengthen the Modern Slavery Act.

“Public bodies must be more vigilant than ever and ensure they are not inadvertently allowing forced labour in supply chains,” they added.