The government has announced that businesses bidding for government contracts will be judged on their commitment to creating high-quality British jobs, tackling local skills shortages, and supporting young people into apprenticeships and work placements.

New rules will double the importance of creating local benefits when the government buys goods or services. The score for bringing benefits to the local community will be raised from 10 per cent to 20 per cent for contracts worth £5m or more.

Businesses will score higher for creating local jobs that pay above the legal minimum and treat workers properly, as well as helping to plug local skills gaps by offering training such as 45 days of work experience.

First Secretary of State Louise Haigh said: "Every pound of taxpayer money should be spent in a way that benefits local communities - creating good jobs and giving young people the skills they need for the future.

"For too long, securing government contracts has been a tick box exercise that fails to deliver the positive change that people feel in their pocket and see in the places they live.

"We are doing things differently. These new rules will ensure the £90 billion that is spent each year through government contracts supports British jobs, skills and people in every postcode."

Cabinet Office Minister Mark Ferguson said: "We believe that if you benefit from something you have a responsibility to give back.

"These changes will mean that businesses that benefit from the billions of taxpayer pounds spent by Government, will have to create more local jobs and opportunities for young people in their area.

"This is about using every tool we have to help people in every postcode live a better life."