Businesses in Hertfordshire are missing out on millions of pounds worth of contracts offered by the county council, it has emerged.

Just 40 per cent of all contracts offered by Hertfordshire County Council, which are worth more than £800million, are given to businesses within the county.

The figure was presented to councillors by the authority's procurement department earlier this month.

EU rules require the council to put all its contracts out to tender, but the Hertfordshire Chamber of Commerce believes more can be done to attract local suppliers.

Chief Executive Tim Hutchings said: "I think 40 per cent is a figure we would like to see very much higher.

"We have been trying to drive this agenda forward and, while the percentage has improved, there is some way to go.

"I am not sure local businesses are being overlooked, I just don't think details of the opportunities are getting through."

Contracts are currently advertised through Supply Hertfordshire, an initiative run by the chamber of commerce and the county council, to encourage local suppliers to bid for contracts.

But Councillor Seamus Quilty, who sits on the resources cabinet panel, says businesses need to be made more aware of the opportunities available to them.

"This is £800million that local businesses could be vying for," he said. "The clear benefit is that, if local businesses are involved, it has a direct impact in terms of employment opportunities, disposable income and the local economy."

Of the council's total supplier portfolio, 61 per cent of contracts are given to large businesses, 19.5 per cent to medium-sized businesses, and 19.5 per cent to small businesses.

Research also found that 11 per cent of the council's suppliers would be "at risk" if their contracts with the authority were withdrawn.

Head of procurement at the council, Peter Maguire, said: "We are not allowed to show any bias in terms of where our suppliers are based, but there is an opportunity to encourage more local businesses to bid.

"We are trying to push the number of local suppliers up, but within the rules of public procurement. By making more businesses aware, more will apply, and hopefully win the contracts."