IGN learnings

Delivering social value

How to maximise benefits for local communities

Ellis Farrar

Researcher at Metro Dynamics

Mainstreaming inclusive growth

Ellis Farrar

Researcher at Metro Dynamics

Social value is one of the key levers that local and combined authorities have to support inclusive growth.

Public procurement continues to be a large source of expenditure in local economies, with public bodies spending over £300bn a year on procuring goods, services and works from external organisations. By holding contractors to social value commitments, procurement is an important tool that ensures the flow of money in local economies plays a role in delivering inclusive outcomes at scale.

Social value across the UK

There is a complex legislative landscape across the UK. England is covered by the Public Services (Social Value) Act 2012. In Wales, public procurement is aligned with the Well-being of Future Generations (Wales) Act 2015 and most recently the Social Partnership and Public Procurement (Wales) Act 2023. Scotland passed the Community Empowerment (Scotland) Act in 2015, whilst Northern Ireland does not have equivalent legislation.

Against this backdrop, many local and combined authorities have developed social value procurement policies that go beyond the cost of a contract to consider how spending can have a wider economic, social and environmental impact. Over two thirds of councils now have a social value policy and a further 13% are developing one. Belfast City Council is delivering their Social Value Procurement Policy despite this not being a statutory requirement.

Our workshop

On 24th July 2024, the IGN held a workshop with members on how to maximise benefits for local communities through the delivery of social value. We worked closely with colleagues from Cardiff Council and Belfast City Council to scope and lead this session, with Gareth Macarthy (Social Value Officer, Cardiff Council), Michael Bawden (Communications and Engagement Officer, Cardiff Council), and Lewis Murray (Senior Category Manager, Belfast City Council) providing opening remarks for each thematic discussion.

Members participated in a practical discussion, focused on sharing good practice and approaches to embedding and delivering social value across three themes:

1. Capacity and resourcing – putting in place the resource to manage and deliver social value

2. Governance and engagement – going beyond the ‘usual suspects’ to engage and work with communities

3. Monitoring and evaluation – measuring success and meaningfully capturing impact

This resource highlights the key learnings from members at the forefront of delivering social value in local government.

Key learnings

Capacity and resourcing

There is no one way to manage and deliver social value – there are a variety of approaches across the IGN in terms of how social value is resourced and where it sits organisationally: This needs to complement existing structures and ways of working. In some authorities, social value is the responsibility of contract managers, whilst in others there are dedicated officers that either sit in procurement or corporate services. In others, dedicated officers act as a central function, working with suppliers and commissioners, and connecting teams (e.g. procurement and inclusive growth).

Governance and engagement

Local community engagement with hard-to-reach groups can help to inform what social value commitments should address:

Leeds City Council has conducted a listening exercise in six priority wards with the highest level of deprivation and are looking to align community needs with social value outcomes.

Barking and Dagenham has surveyed residents at the ward level on a range of costed interventions to aid residents’ choice over priority projects. Digital and physical copies enabled a wider audience to be involved in decision-making.

There are innovative approaches to creating forums that provide a platform for and elevate local voices:

South Yorkshire Combined Authority and the North of Tyne Combined Authority (now absorbed into the new North East Combined Authority) have run Citizens’ Assemblies, bringing together a demographically representative sample of the local area in one room.

Poverty Truth Commissions can also remove barriers and elevate the voices of people with lived experience of poverty, embedding them in decision-making processes.

Convening existing networks, groups and forums can connect contractors, suppliers and the local community, maximising the effectiveness of engagement:

To develop their Wellbeing Framework, the North of Tyne Combined Authority funded trusted, highly localised community groups to carry out engagement on their behalf.

Leeds City Council use a local community anchor network that enables a systematic approach to outreach across the city.

Barking and Dagenham Council has a bimonthly voluntary, community and social enterprise (VCSE) panel to align provision with community requirements, and connect business with the needs of VCSE organisations, creating a ‘community of givers’.

Monitoring and evaluation

Clear and effective measurement of impact aids visibility of social value to senior leadership, partners and communities: Barking and Dagenham Council measure social value outcomes as part of the wider suite of KPIs within procurement contracts, producing an annual impact report to senior leadership, highlighting achievements with data and case studies. Liverpool City Region Combined Authority also produce a social value impact report.

Relationship management with contractors is crucial to maximise the delivery of benefits for communities: This involves regular touchpoints and clear communication. Members discussed providing social value credits to give contractors flexibility when there are challenges around delivering against their original commitments. Greater Manchester Combined Authority proactively offer alternatives to contractors, signposting them to VCSE organisations with specific needs. North Ayrshire Council direct contractors to their Community Benefits Wishlist, enabling contractors to support local community organisations.

Celebrating successes and stories helps to build a movement across both suppliers and contractors: North Ayrshire Council has a quarterly contractor-facing newsletter, which highlights successes and tells stories of impact in the community, encouraging businesses to adopt good employer practices and deliver social value outcomes.