Jo Gideon MP elected as new Chair of the All Party Parliamentary Group for Social Enterprise

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.

On Tuesday, 15 October 2024, Tarem Services, a social enterprise dedicated to tackling in-work poverty and food insecurity, joined forces with leading UK construction company Wates Group to bring essential food support to families in Kilburn Square through their Mobile Foodbank initiative. Tarem Services has partnered with Wates as a member of their supply chain, employed by the group to provide cleaning services and labour supply in Brent and on several other of their London contracts. Wates are currently delivering a wide range of planned works at Kilburn Square on behalf of Brent Council. A total of 100 food bags were distributed, each containing enough food to feed at least two people, benefiting approximately 200 individuals. This distribution directly addresses immediate community needs and demonstrates the commitment of both Tarem Services and Wates to supporting local communities. This collaboration forms part of Tarem Services' broader mission to provide support where it is needed most. Managing Director Titus Komolafe expressed his gratitude for the partnership and the positive impact achieved: “At Tarem Services, tackling in-work poverty starts with addressing fundamental needs like food security. Our partnership with Wates reflects what can be achieved when businesses are driven by shared social values. Together, we are making a real difference in the lives of families here in Kilburn Square.” James Gregg, Regional Managing Director for Wates, said: “Improving the lives of residents and creating thriving communities is at the core of our business. Partnering with social enterprises like Tarem to deliver initiatives like this allows us to support the local community in becoming stronger and more resilient. " Building Stronger Communities This initiative demonstrates how corporate and social enterprise partnerships can drive positive change and foster resilient communities. By collaborating with organisations like Wates, Tarem Services not only delivers high-quality services but also creates social value that uplifts the community. To learn more about Tarem Services’ Mobile Foodbank and discover how you can support our community initiatives, visit: taremservices.com/foodbank About Tarem Services Tarem Services Limited is a social enterprise focused on tackling in-work poverty and food insecurity, especially among cleaners in the UK. Founded in 1999 with the support of a Prince’s Trust grant, Tarem Services has built a reputation for responsible business practices. The company provides office and school cleaning, construction labour supply, pest control, and waste management services, all while remaining committed to social responsibility and environmental sustainability. About Wates Group Established in 1897, we are the UK’s leading family-owned development, building and property maintenance company. In 2022 we employed over 4,000 people and generated profits of £33.7m from a turnover of £1.89bn, working with a wide range of public and private sector customers and partners. Now in our fourth generation of family ownership, we’re committed to the long-term sustainability of the built environment and to making our industry more inclusive and representative of the communities we work in. We are one of The Times Top 50 Employers for Gender Equality and an Investors in People Gold accredited company. We are driven by our shared purpose of working together to inspire better ways of creating the places, communities, and businesses of tomorrow. wates.co.uk

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.