Public Services (Social Value) Act 2012

Baroness Burt of Solihull Excerpts

Thursday 27th February 2020 Lords Chamber

Asked by

[Baroness Burt of Solihull]

To ask Her Majesty’s Government what plans, if any, they have to strengthen the Public Services (Social Value) Act 2012 as part of their review of procurement regulations post-Brexit.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

My Lords, as outlined in the civil society strategy, central government is stepping up our ambition to deliver social value through commercial activities. In future, social value will be explicitly evaluated as appropriate, rather than considered, and extended to goods and works contracts in addition to contracts for services. This joint programme between DCMS and the Cabinet Office puts social value at the heart of an estimated £40 billion of public spend each year. The Government intend to publish a Green Paper consultation on possible procurement reforms to make the rules simpler, more flexible and better placed to support improved commercial outcomes and meet the UK’s specific needs.

[Baroness Burt of Solihull (LD)]

I thank the Minister for that Answer and for taking the time and trouble to meet me last week. I think we both agree that social value is an incredibly powerful tool to create benefit for communities of all kinds. Does she also agree that social value needs to be central to the procurement process and not just an add-on, and that 10% of contract value is entirely insufficient to enable the full potential of social value to be realised?

[Baroness Barran]

I absolutely agree that social value is central to our procurement process: it is a massive lever. It is £49 billion of central government expenditure, but total public sector expenditure was £284 billion in the last financial year, so it is one of the biggest levers we have in terms of our focus on place and on levelling up. The 10% is a minimum, and my experience going around the country is that areas frequently go above and beyond when they get this. I was in Durham last week, where more than 55% procurement is through social value, and Manchester has set a minimum of 20%.