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Cabinet Office minister gives update on the Government’s plans for future consultation on public procurement laws
Georgia Gould MP tells attendees at the Social Value Leaders’s Summit that she wants to give social value “more teeth, more strength, more clarity”.
Georgia Gould MP, the Cabinet Office minister responsible for public sector reform, has said the government intends to consult on further reforms to public procurement processes, as announced to Parliament in February.
Speaking at the Social Value Leaders’ Summit yesterday, Gould said she wanted to give social value ‘more teeth, more strength, more clarity’ and was keen to explore how to really capture the social value of social enterprises.
“If I’m back here in a year’s time, I want to see a real change in the way government and the public sector buys that is thinking about how we support, incubate and maximise spend with SMEs and social enterprises,” Gould said.
To build on progress thus far, the Government will consult on a range of measures to potentially take forward public procurement processes and drive economic growth, support small businesses, and better support innovation.
Declaring herself “a big believer in social enterprises” Gould was addressing a crowd of nearly 200 social entrepreneurs, commissioners and corporate social value leads gathered for the tenth Social Value Leaders’ Summit at the headquarters of professional services firm PwC in central London.
Gould shared that the potential for procurement as described in the government’s recent National Procurement Policy Statement had captured the imagination of her colleagues in the Cabinet Office. The statement sees public procurement as a key lever to achieving Government aims by sourcing goods and services that deliver value for money and social value.
The challenge that remained was to make sure that the people procuring goods and services really prized social value. “Too often procurement teams are isolated from policy objectives,” she said. “There is a culture change needed across the system and there’s a lot we’re doing to push this forward”.
Georgia Gould in conversation with Peter Holbrook, Chief Executive of Social Enterprise UK
Smaller contracts, more notice, efficient auditing
The minister was preceded by Gareth Rhys-Williams, Chair of National Highways, who lamented the various instruments available to measure social value and called for a joined-up approach to “avoid a chaos of measures and metrics”. This was important, he said, as a third of all tax money goes on public spending.
To try and create social value, Rhys-Williams explained that National Highways have worked on breaking project work up in order to offer contracts that are manageable for VCSEs to service. He also revealed that the organisation will set targets for VCSE expenditure for the first time from April next year.
The mismatch between what commissioners want and what VCSEs can provide was also touched upon by Karolina Medwecka-Piasecka, East Birmingham Programme Development Manager at Birmingham City Council, who called for better forward planning of significant projects so that VCSEs have time to plan and possibly collaborate. “If you know a big contract is coming it might take three years to build a consortium, so the notice of that contract needs to be very advanced,” she said.
The role of VCSE organisations in delivering a mission-led procurement system had earlier been debated by representatives from Kings College London, facilities management provider MITIE, social enterprise Groundwork and law firm Stone King.
Graham Duxbury, CEO of Groundwork pointed out that, although social value is now part of the procurement lexicon, it’s not always followed through into contract management, with the result that it was too easy for social value to slip down the agenda.
Another view on this was offered by Sara Rial, Social Outcomes Lead at business consultancy Jacobs, who told the audience in the last session of the day that she had seen clients she was advising “make big commitments and deliver absolutely zero” in terms of social value.
Fellow panelist Chris Luck, CEO of employment charity Shaw Trust offered some context on the environment in which VCSEs were trying to win contracts, explaining that for most small VCSEs, there were only one or two people working on bids and that for many organisations, the cost of bidding is prohibitive.
Overall, the summit offered a wealth of thinking on the delivery of social value which a more developed procurement system has the power to unlock. We’re grateful to our partners Anthony Collins, Jacobs and PwC for supporting us to host an event which showcased a range of opinions and ideas to further advance a more impactful procurement environment.
It feels like we’re at a real turning point for social value, and this is a key theme of our new position paper, which we’d like to share with you. It sets out that this moment is the start not the end of a journey towards mission-driven procurement and will help guide this work going forward.
Over the coming weeks we will also be working on a document bringing out the key learnings from the day.
