How Social Value in procurement can deliver the Labour 5 Missions

In its National Procurement Policy Statement survey, the UK Government asked for feedback on how a new approach to public procurement could help to deliver Labour’s Five Missions:  

1. Kickstart economic growth
2. Make Britain a clean energy superpower
3. Take back our streets
4. Break down barriers to opportunity
5. Build an NHS fit for the future

These missions are deeply connected to Social Value – the practice of delivering additional social, economic, and environmental benefits. Having worked with public buyers and suppliers to deliver Social Value for close to a decade, our experts had plenty to say!  

Here, we share key recommendations that we urge the Government to consider as shape their next round of procurement policy. 

💡 Learn: What is Social Value? 

Making the public pound go further with Social Value  

Embedding Social Value requirements in public contracts is a proven way to tackle local social, economic and environmental issues, all while providing essential public services. 

Take our member the London Borough of Waltham Forest as an example: since 2020, its partnership with suppliers has created an additional £47 million of Social Value as measured by the TOM System™, including: 

• 700 sustainable local jobs 

• 7,279 tonnes of waste diverted from landfill  

• £12 million spent in the local economy 

Inspirational and important work like this is happening all over the county – and with a few policy adjustments, the Government can enable even bigger beneficial outcomes. Here are some of our top recommendations. 

💡 Discover: Social Value success stories 

Key recommendations to unlock Social Value in procurement 

Set a minimum Social Value weighting for procurement decisions 

Procurement Policy Note 06/20 mandates a minimum 10% ‘weighting’ for Social Value when evaluating bids for central government contracts. This means that 10% of the decision should concern public benefit, with the remaining 90% comprising other core concerns like cost and quality.  

While many local authorities already meet or exceed this standard, making it a universal requirement (where the requirements are related and proportionate to the subject-matter of the contract) would encourage consistency across all public bodies. 

Promote accountability for delivery 

When public procurement fails to deliver promised Social Value outcomes, or when results aren't transparently shared with communities, trust erodes.  

Two policy changes could strengthen accountability: 

• Monitor supplier performance through key performance indicators (KPIs) and include delivery of Social Value outcomes 

• If promised Social Value commitments are not being delivered, implement proportionate remedies or penalties for non-delivery 

These steps would help public buyers and suppliers work in partnership and be accountable for the promises made to local communities. 

Embed Social Value into procurement frameworks 

Public sector procurements through frameworks total £31.6 billion annually, according to Tussell. By mandating Social Value requirements in these frameworks, the Government could unlock a substantial amount of additional public benefit in support of its Five Missions. 

Update the Social Value Model 

The Social Value Model, established in 2020, was a great start, but much has changed since then. Here’s how we can improve its effectiveness: 

Introduce quantitative measures:

The current model focuses on qualitative assessments, which do not encourage suppliers to apply care, consideration and commitment to delivering their Social Value contributions beyond the bidding phase.  Adding quantitative measures would incentivise better planning around what and how Social Value impact will be delivered, while encouraging partnerships with Voluntary, Community, Faith and Social Enterprises (VCFSEs) across the supply chain.

Alongside qualitative descriptions, quantitative measurement would provide a better foundation for successful contract management and partnership building between public authorities and their suppliers. 

Align the Model with the Five Missions:

Labour’s Five Missions encapsulate the nation’s core challenges. Updating the Social Value Model’s themes to reflect these missions would better align procurement with government priorities and encourage suppliers to address critical societal issues. 

💡 Learn: What is the Social Value Model? 

Fostering collaboration for greater impact 

An approach to procurement that delivers Labour’s Five Missions will require collaboration between public procurement bodies, local partners, and suppliers. Here are some practical steps to drive that collaboration: 

Establish a best practice network 

Ahead of the 2024 election, Labour proposed a multi-sector Social Value Council—an idea we fully endorse. A similar framework, the National Social Value Taskforce, already shares best practices and fosters collaboration and co-creation of solutions. Under government guidance, a dedicated Social Value Council could take these efforts to the next level. 

Encourage collective buying 

Public buyers can increase their Social Value impact by joining up and using collective buying. This would see procurers pooling requirements and budgets and using that buyer power to negotiate better Social Value outcomes to achieve broader community benefits. 

Introduce Social Value requirements in Business Improvement Districts 

In Business Improvement Districts, eligible businesses contribute to local improvement projects through a levy. By introducing Social Value requirements in these districts, the Government can drive even more benefits to for both local businesses and the local communities.  

Fund place-based projects  

Finally, the government could dedicate funding to ‘place-based’ Social Value projects – partnerships in which local stakeholders come together to tackle well-defined and researched local needs. One excellent example is the County Durham Pound, which unlocked £305 million of Social Value in its first year through multi-sector collaboration.  

Dedicating funds to ‘place-based’ Social Value initiatives - projects tailored to specific local needs - would be an effective way to bring stakeholders together to create positive outcomes. 

Supporting the Government’s Five Missions: Next steps 

Want to align your Social Value initiatives with government policy but not sure where to start? We’ve got you covered with a breakdown of initiatives that support the Missions.  

And for the latest insights into Social Value in procurement, watch our masterclass with experts from Durham County Council, Solihull Metropolitan Borough Council, Ashfield District Council, and Sheffield City Council: Social Value 101 for in buyers.