Government Procurement

Mark Sewards Excerpts

Tuesday 2nd December 2025 Commons Chamber

[Mark Sewards (Leeds South West and Morley) (Lab)]

My hon. Friend is making an excellent speech and a powerful argument. I have been dealing with an advanced manufacturer of metal and steel wires in my constituency that has been put off by the very thing he describes. That company stands ready to support the Government’s mission on clean and green energy—it wants to supply its steel wires to wind farms—but things like this deter it from getting involved in the first place. Does he agree that that needs to change?

[Barry Gardiner]

I am heartened. When some hon. Members approached me about this Adjournment debate, I said, “Look, it’s extremely boring—you won’t want to be in it,” but to have had three interventions that have been so apposite is really gratifying.

An alternative approach would be for most social value requirements to be included in the tender and contract documents as conditions relating to the delivery of the contract, rather than an item that is scored at the tender stage. Here, a method statement would be required shortly after the award of the contract, but only the winning contractor would have to prepare it. I hope that that goes some way to answering the questions from my hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell) and for Leeds South West and Morley (Mark Sewards).

My third concern is that the social value requirements may not be deliverable in large construction contracts. These have many layers of employer involved in delivering the contract and a significant turnover of employers and workforces at different stages of the contract. That is very different from the majority of service contracts. Key issues arising from this could include: ensuring that the subcontractors who employ most of the workforce deliver the social value requirements and provide the necessary monitoring information; getting highly mobile subcontractors to recruit and train locally based people; and ensuring continuity of employment and training for new entrants when subcontractors have limited engagement with the project and the training requires one or two years of on-site support. The current social value model demonstrates no awareness of those issues. If it feels impractical to achieve jobs and training on a particular project, procurement teams may opt for alternative social value outputs or opt out altogether. That could undermine the high priority given to providing opportunities for disadvantaged groups in the delivery of major projects.

Fourthly, the social value model uses terms such as “people under-represented in the labour market” and “disabled people”. Most applicants from these groups will not be identified on any register or easily categorised for recruitment and monitoring purposes. Indeed, they may not want to be labelled in this way, whatever the standard metrics require. In the toolkits to which I have referred, the focus of attention is on local people’s need for employment and for in-work training and support. Often months or years of employment is needed if new entrants are to become fully productive and embedded in their trade. Targeting comes by recruiting from training and support organisations that work with the target communities, especially local organisations.

Fifthly, the term “community” may have widely different meanings. Where there is a locality element in the model’s mandatory standard reporting metrics, “community” is defined as a UK region, but people living close to a major infrastructure development probably see their community as having much narrower boundaries. These more targeted benefits seem closer to the Government’s missions as described.

There is an additional question. The annex to procurement policy note 2, from February this year, states that employment opportunities arising from a contract must be advertised via the Department for Work and Pensions’ “Find a job” website, as well as local jobcentres. In the past, the website has offered the employer suitable candidates from anywhere in the UK, often within hours. That creates additional barriers for local new entrants, as they are competing with candidates from a very wide area. If the requirement is still applicable, this issue needs to be addressed by the Department for Work and Pensions.