Public Services (Social Value) Bill

Debate between Hazel Blears and David Nuttall

Friday 25th November 2011 Commons Chamber

[Hazel Blears]

I absolutely share the hon. Gentleman’s point. The economy is difficult, there is less money around and public authorities have less resource to spend, so we must ensure that we get as much value as possible out of every pound we spend. The social enterprise sector is often very innovative and comes up with new ways of working and doing business, and that has been one of its particular advantages. There is good innovation in the public sector, but small organisations that have a complete passion for something will often take the system apart, look at how things are currently done, and get more value and productivity.

[Mr Nuttall]

I entirely agree that there are many instances of innovation in some public sector organisations and in social enterprises, but does the right hon. Lady agree that there are also thousands of examples of innovation in the private sector?

[Hazel Blears]

I entirely agree. I was about to say that this is not just about the social enterprise sector. One of the good things about the Bill is that it is about social value wherever the commissioning take place, whether in the public sector, the private sector or the voluntary and community sector. There was perhaps a tendency in the past to limit social value to a particular niche in the market for the voluntary and community sector. That sector does fantastic work, but not exclusively. If we can get social value into some of the big private sector organisations, we will see more productivity and a greater impact. A range of large corporate organisations are recognising that doing good is good business. Getting that combination of people using their existing business model to achieve social action and social change is a big movement in this country. We have heard talk about responsible capitalism. There are moments when something happens in society, and I think that we are at one of those moments. Many big organisations have recognised that for their own sustainability—not for charitable purposes, but to do good business—using their procurement, supply chains, product development and investment for social action in communities will be very beneficial. I think that there will be a move from the traditional concept of corporate social responsibility of doing some charitable work once a year to embedding a social action model at the heart of business, small and large, in this country. It is a development that I welcome hugely.

I want to make a few comments about that change. The amendments that my hon. Friend the Member for Harrow West has tabled refer to the definition of social enterprise, which is important, and I hope that the Minister will address it, but I also think that the system currently has barriers to big corporations taking the agenda forward. If we are to have commissioning in the private sector that focuses on social value, we need to think about that. A social enterprise called Create opened its doors in my constituency only a week ago. It provides work opportunities for young people and older people who have been homeless. It brings them through a production kitchen to gain catering skills and provides outside catering services. It is a business that describes itself as being “for more than profit”, which I think is an interesting description. It started in Leeds and also operates in Doncaster, Liverpool and, now, Salford. In Leeds it now runs a five-star, top-class restaurant—a little like Jamie Oliver’s Fifteen—which teaches homeless people catering skills. It has a relationship with Morrisons supermarket, and if the people it trains do not go into catering, they are often job-ready and can go into the world of work. That fabulous partnership works for everyone involved and, increasingly, big companies want to work in that way.

Perhaps the Bill can do something to say to the private sector, “Commissioning for social value is good business for you.” John Lewis and the Co-op have done that for decades, but I want us to be able to have a range of different examples that are big in retail, manufacturing and the important sectors of our economy that use the power of their businesses, whether employing former offenders and people who have had difficulties in their lives. That is why I pressed the Minister on whether we can have goods and services, because I think the artificial distinction that this is just about services could limit the ability of the big corporate sector to come into this field. That is something that he might think about remedying if there are legislative opportunities in future.

When I pressed the Minister in Committee on whether there ought to be a definition of social enterprise, I was grateful for his answer:

“The right hon. Lady’s fundamental point is right...there is a spectrum, from pure charitable activity to social businesses. Some blurring of lines might not have mattered until now. She may be right that we have reached the point at which some definition in law is needed.”––[Official Report, Public Services (Social Enterprise and Social Value) Public Bill Committee, 19 October 2011; c. 16.]

He indicated that, in the review of charity law, there were perhaps two legislative opportunities for that.