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How the Labour government plans to drive Social Value

Written by Social Value Portal | Oct 9, 2024 9:11:16 AM

In these politically divided times, Social Value is that rarest of things: a neutral movement with cross-party support. 

The original Social Value Act was carried through parliament by Conservative MP Chris White and his Labour co-author, Hazel Blears. And there are no signs of support waning under the new Labour government, which has continually expressed its support for Social Value since returning to power. 

With that in mind, we’ve rounded up all the ways Labour is planning to drive Social Value forward over the coming years: 

Labour’s “Five Missions” align to Social Value

Back in February 2023, now-prime minister Sir Keir Starmer unveiled five “missions” that his Labour government would seek to deliver if elected:  

  • Kickstart economic growth, including “good jobs” and productivity growth in every part of the country. 
  • Make Britain a clean energy superpower, including a pledge to deliver cheaper, zero-carbon electricity by 2030. 
  • Take back our streets, including a pledge to halve serious violent crime. 
  • Break down barriers to opportunity through reforms to childcare and education systems. 
  • Build an NHS fit for the future to build a “fairer Britain” where “everyone lives well for longer”. 

These missions speak to various goals — sustainability, social justice, community collaboration — that are closely aligned with Social Value, including the framework set out in the Social Value Model. 

💡 Learn more: The Social Value Model and PPN 06/20: The complete supplier’s guide 

Community wealth-building 

Labour has made it clear that it intends to strengthen local economies by supporting community wealth-building. 

This includes a focus on awarding more government contracts to local businesses, cooperative organisations, and social enterprises — in other words, the types of organisations that are most likely to invest in their own communities. 

Plan to “Make Work Pay” 

Labour’s efforts to kickstart economic growth will include a plan to “Make Work Pay” through measures like: 

  • Greater in-work security 
  • Better pay 
  • More autonomy in the workplace 

As part of this plan, Labour will create a new Social Value Council responsible for boosting the Social Value delivered through public contracts by driving accountability and defining best practices. 

Implementing the Procurement Act 2023 

The new Procurement Act promises to streamline procurement, make it easier for new entrants to apply for government contracts, and increase transparency around how public money is spent (including its Social Value impact). 

It was drawn up by the previous Conservative government and was due to take effect on 28 October 2024, but the implementation has been pushed back until 24 February 2025 by Labour. 

To be clear, the delay isn’t because the new administration sees the Act as a lower priority. 

Quite the opposite: it naturally ties in with Labour’s pledges toward prioritising green procurement and creating a circular economy. As such, it wants to rewrite the previous government’s National Procurement Policy Statement (NPPS), feeling that the existing statement failed to fully meet the challenges of delivering value for money, economic growth, and Social Value.  

💡 Learn more: Social Value and the Procurement Act 2023: 5 things businesses should know 

What next for public procurement and Social Value? 

There are still questions to be answered around Labour’s approach to Social Value. Will the commitments in its manifesto come to fruition? What will its new NPPS look like? 

But one thing is clear: Social Value isn’t going anywhere. It remains a key issue on both sides of the House — and legislation is making it even more of a priority. 

Are you aligned to the government’s Social Value guidance?  

Although businesses need a Social Value strategy to win public sector contracts, many bid teams struggle with the government’s key piece of Social Value guidance: the Social Value Model.  

That’s why we’ve collated all the guidance you need, from deep dives to case study templates, in our Social Value Model Resource Hub.