The Local Council Report / Transparency spend / Supplier hhi · markdown view

Supplier hhi

index 0–1 (or 0–10,000) · constructed · council-month

Every English council must publish every payment it makes over £500 — the raw chequebook. This variable condenses that chequebook into a single concentration score (the Herfindahl–Hirschman Index, borrowed from competition economics): near 0 means spend is spread across many suppliers, near 1 means a handful dominate. Heavy dependence on a few suppliers can mean weak competition, higher prices, and real trouble if a dominant contractor fails.

Definition

namesupplier_hhi
dataset11-transparency-code-spend
kindconstructed
typenumeric
unitindex 0–1 (or 0–10,000)
graincouncil-month
rolefeature
sourcesum_i (spend_i / total_spend)^2 over suppliers i, from normalised supplier and amount_gbp
periodper council-month (or pooled months)
missingnessComputable only after schema normalisation and supplier-name cleaning across the three-council sample; sensitive to supplier-name normalisation quality, and non-comparable across councils with different coverage exclusions (e.g. Sefton omits staff payments and redacted social-care items).
score_noteStrong supplier-dependence signal, though sensitive to name normalisation quality.
peer_groupcouncil class (district / county / unitary / metropolitan / London) — not yet scored on the leaderboard

Herfindahl–Hirschman concentration of a council-month's spend across suppliers. Values near 1 mean spend is concentrated in a few suppliers, a dependence/negotiating-position signal rather than evidence of waste. Compare only within like service areas — a county's social-care block contracts mechanically concentrate spend — and only after supplier-name normalisation, since split name variants deflate the index.