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News
Social Enterprise UK’s response to the National Procurement Policy Statement
Social Enterprise UK welcomes the publication of the government’s National Procurement Policy Statement (NPPS), which recognises the power of public procurement, and how social enterprises “are more likely to generate diverse and thriving local economies, creating jobs and economic growth". The new Procurement Act, launching on 24 February, will mean the biggest change to public procurement in a generation. It is particularly pleasing to see the NPPS recognise the value of voluntary, community and social enterprises (VCSEs). The number one requirement for economic growth in the NPPS is to "maximise procurement spend with small and medium-sized enterprises (SMEs) and VCSEs". As the national voice for social enterprise, we have long been building the evidence and making the case for procuring goods and services from businesses with a social and environmental purpose. The Future Economy Alliance, led by us, called for public sector procurement to give greater consideration to purpose, use of profits, paying taxes and employment practices. The NPPS does just that. We also welcome the government’s commitment to mandatory targets for spending with voluntary, community and social enterprises from April 2026, something we've long called for. However, we note that this applies to direct spending only. Given that nearly 50% of government spending with SMEs is indirect, we hope the government will consider applying these targets to all procurement (direct and indirect) in future. From our work on the Buy Social Corporate Challenge, we know that there is a genuine appetite from large business to work with VCSEs in their supply chains. We would like to thank Claire Dove CBE DL for her work as VCSE Crown Representative driving public procurement to create social value, and to Georgia Gould and the Cabinet Office team for their leadership. Our organisation has worked with 12 central government departments in the past three years to benchmark their VCSE spending. We look forward to supporting more departments and agencies in the future to achieve fairer and more sustainable use of taxpayers’ money that delivers the greatest economic and social value.
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