The Social Value Act, which was spearheaded by Social Enterprise UK, requires public bodies to consider the social and environmental value created by providers when awarding contracts. Currently, the Act only covers services.
The government’s plan to review the Act follows the release of The Social Economy Alliance’s manifesto, which recommends the extension of the Act. The Alliance is made up of more than 400 social enterprises, co-operatives, universities, housing associations, crowd-funders, social investors, think tanks and charities – including Social Enterprise UK. They believe that companies that provide the greatest social and environmental value should be preferential suppliers.
The moves appears to run counter to the views of Cabinet Office minister Francis Maude, who’s urged commercial staff to focus on driving down costs. In September 2012, the government’s then chief procurement officer Bill Crothers told CSW that Maude “is very, very clear: it’s first and foremost about getting best value, full stop. So whenever talks are raised about achieving other policy goals as well, he’s not interested.”
If public assets do fall within the Act’s remit, community benefits will have to be taken into consideration when selecting a purchaser.
Peter Holbrook, chief executive of Social Enterprise UK, said that “more can be done to ensure social value is ingrained in public service commissioning. Public money must only be spent on the most socially responsible firms. With public service budgets shrinking, every ounce of the government’s spending power - £227bn – must be channelled into providers that put communities and people first, not private profit.”