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Today’s Budget marked a decisive shift to higher levels of public investment - welcome after more than a decade of austerity. This is particularly on capital spend, but social spending investment is also vital. So how can this additional spending can deliver a fairer, more sustainable and inclusive economy? Resource spending in health and social care is crucial. There have been numerous occasions in recent years when social enterprises delivering core NHS community services have been (and are still) unfairly excluded from government policies, programmes and funding. If the new government is serious about its manifesto commitments to prevention and community services, then it must recognise the essential role social enterprises already play in their delivery across the country every day. Many social enterprises will be concerned with some of today’s announcements. The rise in employer National Insurance Contributions (NICs) will particularly impact social enterprises that create jobs, often for those furthest from the labour market. While Employment Allowance has been increased, which will reduce pressures on smaller businesses, this still raises questions over whether this is the fairest way to distribute the increased tax burden. Social enterprises that provide vital public services may be particularly impacted by the Budget. The minimum wage will rise alongside NICs. While social enterprises are committed to paying a living wage and offering better working conditions, those reliant on public sector funding may struggle with these additional costs if they do not receive a fair funding settlement from the public sector bodies they work with. However, there are clear signs this is a Budget that recognises aspects of the contribution of social enterprises and other mission-led business models. Pledges to reform the taxation of Employee Ownership Trusts and deliver a strategy for growing the co-operative economy demonstrate that there will be more support for diverse, mission-led business models going forward. Social Enterprise UK will continue to work with members and partners to ensure the Government understands the needs and aspirations of social enterprise. We do need investment - but we also need businesses that create high-quality employment, invest in their communities, and offer innovative ownership models that share wealth. We hope that the Chancellor will use her additional spending power to create the conditions in which social enterprises, as businesses committed to more than just profit, can thrive.

By Andrew O'Brien, Director of Policy and Impact at Demos “I am determined to do everything in my power to galvanise growth; determined for this country to be the highest growing economy in the G7 - that is our most important national mission.” These were the words of the UK Prime Minister, Sir Keir Starmer, at the Global Investment Summit earlier this month. It is no secret that the entire government’s political agenda depends on boosting growth.  But while Britain is desperate for growth after nearly two decades of stagnation, it needs to be a particular type of growth. Whether you call it good growth, inclusive growth or sustainable growth, we need growth that meaningfully improves the standard of living for working people. Our economy needs to grow not just by financial measures but in terms of social value – its contribution to local communities, its impact on individual wellbeing, its effect on the world around us. Take one issue: wages. Since the late 1970s, real wage growth significantly slowed down, from a healthy 5.5% per year to 4.4% in the 1980s right down to 1.6% in the 1990s. Despite the ‘Great Moderation’, it only ticked up slightly to 1.7% per year at the turn of the century, before the financial crisis led to wage stagnation and a permanent cost of living crisis. Growth also slowed in this period, but not as dramatically as wages. Median growth rates per decade fell by 24% from the 1970s to the 2000s, while wage growth rates fell by 70% in the same period. We made the wrong economic choices. We allowed highly productive, skilled industries to be replaced with lower productivity and insecure work. We oversaw an ‘extreme form of capitalism’ unique to the UK, where the ‘proceeds of growth’ went to a narrow group, both economically (the richest) and geographically (London and the South East). To be fair to the new government, they understand that they cannot just allow ‘growth’ to emerge organically; it needs to be directed. Their new Industrial Strategy says that “the government is committed to using the power of the state strategically to support and shape the UK’s economy and future growth”. Unfortunately, the UK has eroded state capacity over the past 40 years, and lacks the experience in steering markets needed to deliver good growth now. The new government’s position is akin to trying to win a Formula One race in a car that you’re building as you drive it. But there are tools available to help the new government drive inclusive growth – such as procurement, which it’s encouraging to see referenced in the new Industrial Strategy. The public sector is spending close to £400bn every year: 17% of UK GDP, and 14 times more money than the promised National Wealth Fund, reaching every part of our economy. There’s even more at stake in the private sector, where our largest businesses are spending billions on procurement every year. This presents an enormous opportunity to steer growth in the right direction, building a stronger but also fairer and more sustainable economy. If we can make better procurement decisions - spreading investment into social enterprises and SMEs across our regions, backing innovative new processes and technologies, and creating the conditions for long term planning and productivity gains - we can truly achieve good growth. This kind of focus on social value broadens decision making from short-term financial costs to factor in wider impacts, enabling the government to use procurement as a strategic lever for economic renewal. Central government‘s leadership role is critical; our whole economy is shaped by the standards they set, the organisations they buy goods and services from, and their appetite for risk. No other actor has the strategic capability to shape procurement, and unlock the full potential of social value, in the way that central government can. Early signs are encouraging. A review of the National Procurement Policy Statement is underway, including positive references to social value. Labour mayors are supporting ‘the social economy’ in London and Bristol, the VCSE sector in Greater Manchester and ‘business for good’ in West Yorkshire. The Procurement Act is due to take effect early next year, with an explicit government commitment in the new Industrial Strategy to using the legal framework it creates to deliver greater social value. However, social value must be a key tool for a mission-led government and a core part of their industrial strategy, not an afterthought. We need to create a national strategy for identifying the most socially valuable economic opportunities, encouraging their development, and rewarding businesses such as social enterprises that align to our shared priorities. The Social Value Act could be transformative, but there is much more that needs to be done, as outlined in our recent Demos paper ‘Taming the Wild West’. The government have limited economic levers they can pull to achieve good growth, and social value has a critical role to play in achieving their promised “decade of national renewal”. There is no time to lose.

Sarah Rial is the social outcomes lead at our Social Value 2032 programme partner Jacobs, and the lead author on a new report exploring how social value techniques can improve major project delivery. Infrastructure is the backbone of every country - providing connectivity, shaping places, and delivering vital services to citizens. At its core, infrastructure delivers undeniable value to society. However, budgetary constraints, competing political agendas and conflicting local and national priorities can often result in society feeling overlooked in the decision-making and delivery processes of major infrastructure projects. Speaking with professionals who work across major project delivery in a variety of roles, our research has revealed that projects often feel “inflicted” on communities, rather than being integrated into their regional and national ecosystems. This is leading to the rise of so-called “NIMBYism” (Not in My Back Yard) and criticism regarding the rising cost of major infrastructure programmes, hindering growth and equitable access to quality infrastructure in the UK. There remains an inherent tension in major infrastructure delivery. While projects aim to serve the needs of the nation, in doing so they often have profound impacts on local communities. While in some instances the national interest must be served and the price of the few may be deemed something we must bear; without a clearly articulated rationale for this decision and without carefully selected options and mitigation strategies; this adverse impact on the few can be detrimental to the project, with costs soaring and reputations irreparably damaged. So how do we overcome these challenges to unlock significant economic, environmental and social benefits and ensure these benefits are equitably distributed across society? The answer is simple: we must place people at the heart of infrastructure delivery and bring everyone on the journey with us, united by a common purpose. Infrastructure investments are often driven by societal needs. By conveying a cohesive purpose, companies can drive collective action to respond to customer and societal needs. It can support attraction and retention of high-quality talent and enhance customer loyalty. Purpose-driven companies often demonstrate better long-term performance as their sustainable practices can lead to more stable and predictable returns. As environmental, social and governance (ESG) factors become increasingly pivotal in investment decisions, purpose-driven companies can excel in ESG criteria, thereby attracting private investment. Major infrastructure delivery can benefit greatly from this approach. “Purpose-driven delivery” involves understanding the society our project serves, effectively communicating their value to stakeholders and actively listening while empathising and responding to the communities affected throughout the delivery process. Like purpose-driven organisations, this approach enhances project delivery, aids in making sound investment decisions and mitigates critical risks during execution. This concept isn’t new. The techniques and case studies are derived from established industry practices, tested on major projects in the UK. These methods are employed daily by social value and sustainability practitioners, yet many still limit “social value” to a mere question in public sector procurement. We recognise the potential of social value in achieving improved outcomes on major projects; it helps projects develop a clear “purpose” that resonates with communities, funders, staff and suppliers, uniting them behind a common mission and creating a cohesive approach that permeates every stage of the project lifecycle. Our research has confirmed that social value has been crucial in delivering project outcomes far beyond procurement. It has helped reduce risks, attract financing, foster a united culture and maximise the value delivered for every pound spent. This new publication serves as guidance, offering inspiration and lessons learned from over 40 organisations, demonstrating how social value techniques can benefit both society and projects. We aim to equip leaders, designers, commercial experts and all teams working on major projects with the tools and methodologies to adopt a “purpose-driven” approach to delivery across every project lifecycle stage. By doing so, projects will remain focused on the people they serve, creating a tangible golden thread that runs through every facet of the project and fostering a culture that prioritises doing things right for the benefit of all. This update is part of a series exploring the opportunities for social value to expand across public sector procurement and influence the spending of the UK’s largest companies. Find out more about the Social Value 2032 programme here.

We're deep into party conference season and working hard to push our message up the political agenda, so here are a few of our highlights so far...Since Keir Starmer has already set out the five missions he hopes will define his premiership, we’re urging our new mission-led government to work with mission-led businesses. Alongside our partners in the Future Economy Alliance, we’ve put together a paper making the case for how our movement can help deliver the changes needed, from making Britain a clean energy superpower to building public services fit for the future and breaking down barriers to opportunity.  We’ve already handed this to Chancellor Rachel Reeves, Business Secretary Johnny Reynolds, Chief Secretary to the Treasury Darren Jones, Business Minister Gareth Thomas and Parliamentary Under-Secretary for Housing, Communities and Local Government Alex Norris at conference this week - but we’re just getting started, and will be taking our message to many more political decision-makers. We also ran events including an insightful roundtable alongside Labour Business discussing the need for recognition, finance and government support to grow social enterprise. Our business breakfast at Baltic Creative CIC brought people who've started and supported social enterprises together to explore how the new government can unleash our sector's full potential. We convened a lively panel with Future Economy Alliance partners, chaired by our patron Baroness Glenys Thornton, and attended lots of other events with encouraging conversations about supporting our mission-led movement. With the Liberal Democrats now a renewed force in national politics, we also attended their conference in Brighton this month. We met with several MPs - including former Social Enterprise UK member Josh Babarinde, who is now the party's justice spokesperson and a strong advocate for our sector in parliament. Alliance partners will be attending Conservative Party Conference this weekend, and we'll also have a presence at the Co-operative Party's annual gathering with an exhibition stall and sponsoring drinks at a networking reception. Conference season is all about getting our asks to those with the power to help our sector grow, and showing how we can help them solve problems. You are key to this, so if you’ve spoken to your local MP, engaged with government departments, have suggestions to share or would like to support our continued work raising the profile of our sector with political stakeholders, please contact the team on policy@socialenterprise.org.uk. CLICK HERE TO READ OUR PAPER

Following our successful campaign for social enterprises to be included in the NHS pay deal, which won central government funding last year, we’re launching a new programme to support our members working in health and social care. Social enterprises deliver more than £1bn of vital NHS care across the country, while reinvesting any profits in the communities they serve. Yet the recent fight for equal treatment is a reminder that this contribution is not well recognised, even in the NHS itself. Over the next three years, our new programme will build awareness and understanding of the crucial role social enterprise plays in the NHS family. As the leading national voice for our movement, we strive to address the key issues and ambitions of our members, to ultimately create an environment where social enterprise can thrive. While we continue to champion social enterprise across governments and industry more widely, this new programme will focus on health and care specifically, engaging system leaders to ensure they have us in mind when making relevant policy and funding decisions. We know from our previous research that social enterprises are pioneering ways of integrating health and social care services that deliver huge value. Part of our work now is collecting more data and stories on the social enterprise solutions to issues in public services – providing real inspiration for the wider NHS, local authorities and central government. This growing evidence base will then support our policy advocacy on sector issues where social enterprises just want a fair playing field, such as access to digital funding or recruitment and training. We aim to build on regional workshops we held in recent years to foster constructive engagement between social enterprises, commissioners and system leaders in local and national government. It’s promising to see the ministerial appointment of Paul Corrigan, an architect of the Community Interest Company model and longstanding champion of social enterprise in healthcare, as we look to grow such recognition among key decision-makers. Our events calendar is always busy, as the world’s largest social enterprise network, but this programme will also curate specific networking and peer learning opportunities for our health and care members. We will collaborate with relevant sector leaders like the NHS Confederation, the Local Government Assocation and the Centre for Mental Health to help deliver for our members and the NHS more widely. If you’re a social enterprise health or social care provider and would like to get involved, contact our team on membership@socialenterprise.org.uk.

The shortlist has been announced for the UK Social Enterprise Awards – the country’s biggest celebration of social enterprises, which recognises the best in the sector across 15 categories. The ceremony, organised by Social Enterprise UK, will take place at the iconic Roundhouse in London on the evening of 4 December. Commenting on this year’s shortlist, Peter Holbrook Chief Executive of Social Enterprise UK said: “Our Awards are the ultimate showcase of social enterprise impact and excellence – so those who made the shortlist represent the future of business, and a beacon of hope in turbulent times. “‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​Despite economic challenges, these trailblazers are not only making profit but using it for the good of people and planet. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​Businesses big and small have a vital role to play in solving the problems we face as a society, and the social enterprises celebrated at our Awards give us all inspiration and motivation to do business better.” ‌ To get your tickets to the Awards click here. The Shortlist UK Social Enterprise of the Year Sponsored by Keegan & Pennykid The overall award for a social enterprise that has a clear vision, excellence in impact, and that has demonstrated and promoted social enterprise beyond the sector. Bath Spa University Change Please Community Impact Initiative Community Shop Isle of Gigha Heritage Trust London Early Years Foundation Turning Point Waste to Wonder Worldwide The Workspace Group One to Watch Award Sponsored by PwC The One to Watch Award is for a start-up social enterprise. Key to winning this award is an ability to clearly articulate their future vision and how they are going to achieve it. Amplify Goods Arts Care Construction and Engineering Opportunities (CEO) Courtyard Pantry Enterprise Down to Zero Ltd Esports Youth Club C.I.C Half the Story KERB+ Prove It: Social Impact Award Sponsored by Linklaters For a social enterprise that can truly demonstrate and communicate their impact with their stakeholders. Breadwinners Goldfinger Hey Girls CIC Moneyline Peninsula Dental Social Enterprise CIC The Skill Mill Limited Ravine Market Garden (The Advantage Foundation) 'Buy Social' Market Builder Award Sponsored by Clear Voice For a social enterprise, public sector body or private sector organisation that has demonstrably made efforts within its own organisation and remit to create more opportunities to buy from social enterprises. Amey Co-op McLaughlin & Harvey National Highways Nationwide Building Society Nestle UK&I School for Social Entrepreneurs Social Investment Deal of the Year Sponsored by Better Society Capital For an organisation that has been part of a great investment deal in the last 12 months that has helped the social enterprise to grow or the movement as a whole to develop and flourish. Barking & Dagenham Giving/The Boathouse Barking CIC Big Issue Invest/Lightning Reach Great Western Credit Union/Fair4All Finance Impact Finance Consulting/ARK Resettlement Services British Land/Impact Hub London Ltd Arts & Culture Impact Fund/Music Venue Properties Public Services Social Enterprise of the Year Sponsored by GLL For a social enterprise for whom the majority of their income comes from the public sector and which delivers public services (for central or local government, NHS, criminal justice or other statutory body). CDS CIC Family Fund Business Services Mastercall Healthcare SH24 CIC Simon Community Scotland Social Interest Group Turning Point Consumer Facing Social Enterprise of the Year Sponsored by The Company Shop Group For a social enterprise that delivers a retail product or service to the general public. Nemi Teas Ltd   Stand4 Socks Tap Social Movement Tea People Ltd   The Dusty Knuckle Bakery Zaytoun CIC Education, Training & Jobs Social Enterprise of the Year Sponsored by BDO For a social enterprise in the education, training or employment sectors that can demonstrate excellence in vision and strategic direction, and clearly evidence their social, environmental and community impact. Change Please Cockpit Money A+E The Dusty Knuckle Bakery WYK Digital Environmental Social Enterprise of the Year Sponsored by Landmarc For a social enterprise in the green and environmental sector with a clear evidenced environmental impact. Eco Drama Ethstat Ethical CIC Finance Earth Gloucestershire House Clearances CIC Green Machine Computers Ltd REMO (CCORRN - Cambridgeshire Community Reuse and Recycling Network Ltd) The Compliance People Social Enterprise Building Diversity, Inclusion, Equity & Justice Award Sponsored by Nestlé Social justice is fundamental to the social enterprise movement. This category is open to all social enterprises who are addressing issues around diversity, inclusion and equity. Built By Us City Health Care Partnership CIC Community Renewal Trust Rom Romeha Founders and Coders Grange Pavilion Youth Forum Money A+E Nuneaton Signs Women in Banking and Finance Ltd Social Enterprise Women’s Champion of the Year Sponsored by Bunzl For a woman working in the senior leadership team of a social enterprise who represents excellence in her field of work. Elysha Paige - Bloody Good Employers            Viviene Bish-Bedeau - Construction and Engineering Opportunities (CEO)      Dee Murray - Menopause Experts Group        Nicola Pollock - MorphFit Gentle Movement Project Maggie Gordon-Walker - Mothers Uncovered (Livestock charity)             Hayley Hulme - Starts With You               Paula Jennings - Stepping Stones Jasmine Cannon-Ikurusi - The Sapphire Wellbeing and Employability Academy   Sarah Jordan - Y.O.U Underwear Ltd    International Impact Award Sponsored by Zurich Insurance Group For a social enterprise working internationally, and which are having a big impact in their field. This award is open to UK-based organisations only with existing international operations. auticon UK Finance Earth IDEMS International CIC Stand4 Socks Tea People Ltd The Burnt Chef Project CIC Community-Based Social Enterprise of the Year Sponsored by the Esmée Fairbairn Foundation This award is for a social enterprise that trades for the benefit of their community, making a real local impact. Breadwinners CAIS Social Enterprises and St Giles Cymru Esports Youth Club C.I.C Homebaked Bakery Peninsula Dental Social Enterprise CIC Social Enterprise Kent Trivallis Social Enterprise Innovation of the Year Sponsored by Barclays Business Banking A new award is recognising a social enterprise that has brought something truly innovative to market in the past year. Big Issue Group Change Please Clear Voice Even Qualia Law CIC RAW St Helena Hospice Tech for Good: Technology Social Enterprise of the Year Sponsored by Mitie For a social enterprise that uses technology to achieve social impact. auticon UK Beam Green Machine Computers Ltd Hope 4 The Community CIC Pocket Power Showcase the Street WYK Digital We are pleased to be working with Cwmpas, Social Enterprise Northern Ireland and Social Enterprise Scotland to deliver the Awards. ​A‌‌‌wards Sponsors ​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mark Cook is a partner at Social Value 2032 programme partner Anthony Collins law firm, who has 30 years’ experience of procurement with well-being at its heart. As UK Parliament reconvenes this week, change is afoot with our new Government. There is a clear determination to build the economy - drawing together themes of enabling good employment, addressing poverty and homelessness, tackling climate change, embracing new technology, reforming public services, empowering local communities and improving lives. Within that, mission-led and social business has a huge role to play. Businesses that have the advancement of good in society over profit as their main driver can make the telling difference in re-imagining and delivering better public services, especially if these are procured through an intentionally values-based public procurement process. So, how might all that fit within an approach to commissioning, procuring and managing public services? Inclusive growth in public procurement requires thought, not just action. Three things need to be joined up: There is a section headed ‘Procurement’ at the end of the document ‘Labour’s Plan to Make Work Pay’, which says: “Before any service is contracted out, public bodies must carry out a quick and proportionate public interest test, to understand whether that work could not be more effectively done in-house.” It would be good to align this public interest test with an embedded approach to social value or public value, such as that embraced by HM Treasury’s Green Book. Before contracting authorities can begin any procurement of services, they are legally required under the Social Value Act to consider “how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area – and how, in conducting the process of procurement, it might act with a view to securing that improvement”. This is primarily a public law duty on public bodies to thinkabout well-being, in the three dimensions listed, before they procure – not ask suppliers what they can do by way of added value. The new Procurement Act (coming into force at the end of October 2024) sets out the objectives that a contracting authority must have regard to – including delivering value for money, maximising public benefit, sharing information about procurement policies and decisions, and being seen to act with integrity.  There is also the requirement to consider the barriers that small and medium-sized enterprises may face to participation, and whether such barriers can be removed or reduced. More duties to think, but this time during the entire procurement and contracting process. Government guidance published last month says: “In order to achieve value for money, contracting authorities should have a comprehensive understanding of their requirements and link them to their policy priorities (which may include wider economic, social and environmental considerations where they are relevant, proportionate and non-discriminatory)”. With all these requirements to think, there is the opportunity to consider not only how communities are best served but how everyone is included in the transformation of public services. That must mean including those who would otherwise be left out – and harnessing the power of social enterprises, whose purpose is to do just that. This blog is the first of a series that will explore the opportunities presented by these areas, considering the latest guidance from government and the possibilities to reshape public expenditure. Find out more about the Social Value 2032 programme here.

With the Labour Party returning to power, the issue of worker rights has emerged as a priority for government. The New Deal for Working People is the proposed flagship reform, offering a suite of policies aimed at enhancing protections and banning exploitative practices. While trade unions have been intimately involved in the development of this package, Labour has also been keen to stress the desire to work in partnership with business. Sector groups and leaders have welcomed some of the ambitions and policies announced in Labour’s election campaign - but, as the Confederation for British Industry (CBI) noted, there remain “legitimate concerns” within the business community[1]. However, our recent Social Enterprise Knowledge Centre research shows that such concerns are short-sighted, considering the impact that deteriorating working conditions have had on our economy. Since the 2008 financial crisis, wages have stagnated and living standards have plunged, largely due to employers’ growing power over workers[2]. Short-term gains from weak working rights are offset by the long-term damage poor working conditions have on the wider economy. Poor wages stifle demand and limit growth. Insecure work contracts lead to high staff turnovers, generating costs in the replacement process. Lack of investment in staff contributes to stagnating productivity and undermines the ability of businesses to invest in the future. These are not the economic conditions in which business can thrive.  Social enterprise has long recognised the inherent value of good working conditions, leading the way for wider business– as evidenced by some of our latest research findings: 8 in 10 social enterprises employers are paying the real Living Wage 77% of social enterprises are providing some form of workplace training 95% of social enterprises offer some form of flexible working arrangement[3] Far from being a burden to these businesses, many social enterprises have found investing in the quality of their employment offer enables them to retain and grow their workforce, even in the face of persistent crises. Social enterprises are demonstrating valuable business insights into how Labour should approach its New Deal for Working People. Our latest Social Enterprise Advisory Panel report suggests that social enterprises are broadly supportive of Labour’s proposals, but also some areas that deserve careful attention: Public sector contracts – Many social enterprises provide critical public services and rely on public sector contracts. It is imperative that these are properly funded, so that social enterprises and other businesses can pay staff fair wages and maintain decent working conditions. Flexibility where appropriate – While social enterprises are vocal critics of exploitative contracts, in some cases, flexible contracts can be mutually beneficial to both the business and their employees. The focus should be on ensuring that such contracts are available, providing workers are happy with terms, and with enhanced protections to provide additional security. New ownership models – From co-operatives to employee-owned firms, there are diverse ownership models that give workers a direct stake in their business. We need more support to encourage the establishment and growth of businesses where workers lead from the front. Good jobs are the foundation of a prosperous economy, and while the details will need to be carefully considered, social enterprises continue to help deliver better working conditions. Social enterprises show that business should not fear the New Deal for Working People but embrace protections that will raise living standards, improve incomes, boost productivity and create an economy where businesses and workers can thrive. You can download our latest Social Enterprise Advisory Panel report using the link below: [1] https://www.cbi.org.uk/articles/is-your-business-budget-ready/ [2]https://cep.lse.ac.uk/pubs/download/ea066.pdf?_gl=1*lmgqij*_gcl_au*MTc1ODIxMTQyNi4xNzIyNTExNjky*_ga*MTc4MDcyNjUzLjE3MjI1MTE2OTI.*_ga_LWTEVFESYX*MTcyNDE0ODk3Ni4xLjAuMTcyNDE0ODk4MC41Ni4wLjA. [3] https://www.socialenterprise.org.uk/app/uploads/2024/07/Good-Work-Working-conditions-in-social-enterprise-July-24.pdf