Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what estimate he has made of annual cost of requiring social value obligations.

The Ministry of Defence commercial policy requires the application of the Cabinet Office Social Value Model to all in-scope procurements conducted under the Procurement Act 2023, which was enacted by the last Government.

Suppliers should not assume that costs associated with delivering social value commitments will be passed on to the contracting authority.

Contracting authorities are encouraged to consider whether it is appropriate to cap tendered prices to ensure that the delivery of social value does not result in additional costs that fail to represent value for money.