News

Today (21 November) we mark Social Enterprise Day - a time to raise awareness and understanding of our global movement - with new research that shows the impact of business putting people and planet first. Unlike traditional businesses, social enterprises reinvest profits in vital missions, from bringing communities together and creating employment opportunities to tackling environmental issues and stimulating local economies. New analysis on our Social Enterprise Knowledge Centre provides regional breakdowns of our sector across the country - overall painting a vibrant picture of the many and varied social enterprises from Cornwall to Cumbria, driving positive change despite complex economic challenges. We’re proud to shine a spotlight on the great work of our movement. Read the new research

As our new government maps out its “mission-based” approach, the Cabinet Office is looking at how public procurement could support this – and as part of our work to build markets for social enterprise, we’re seizing this opportunity to show political leaders the added value unlocked when we work in partnership. Procurement is one of the government’s most powerful economic tools, with public sector bodies spending over £400bn to deliver vital public services and critical infrastructure in the last year alone. Unfortunately, the current system is failing to achieve its full potential, as evidenced by our Social Value 2032 research. With a more effective strategy, these funds could help shape markets to improve business behaviours and social outcomes. We hope this new government consultation is the start of a journey to making public sector procurement more collaborative and innovative, so that it delivers greater value – and we know social enterprise can help accelerate progress here. Our business model naturally aligns to a mission-driven approach, putting people and planet before profit. However, system change is needed to really unleash the procurement power of social enterprise suppliers. Having given insight and advice directly to government as part of the consultation, we also wanted to publicly share the highlights of our response, as we continue to push for more engagement and understanding. A key point is making legislation work better. Our research found £56bn in added value has been lost since the Social Value Act came in, so this must be strengthened alongside updates to the National Procurement Policy Statement. It’s promising that guidance on the upcoming Procurement Act expresses a specific intention to benefit social enterprises, and we’ll share our sector insight with policymakers to ensure they understand our needs and expectations. Going further, commissioners must recognise the intrinsic value of organisations in their supply chain. Rather than narrow measurement processes that relegate social value to a tick-box exercise, commissioners should consider how suppliers in their supply chain might advance wider strategic goals. Ultimately, commissioners need the responsibility and guidance to play the role of market stewards; procurement spending should be recognised as investment, with commissioners obliged to consider how such funds can be used to deliver more for the communities they serve. This should also mean actively limiting opportunities for profit in certain areas. When vulnerable individuals are dependent on specific services like social care, there should be no opportunity to make profit at the expense of investing and providing the highest quality service. The government’s new plans to prevent profiteering in children's homes are a very welcome step in the right direction – but there are concerns about whether profit-driven businesses would make voluntary changes, and questions about how mandatory legislation would work in practice. Where possible, commissioners should look to reserve more contracts for suppliers that have adopted business models where surplus funds are used to invest in services, rather than enriching shareholders. Overall, more transparency is needed across the procurement system. Commissioners need to understand what colleagues across the public sector are doing and pursue best practice in line with their own goals. Similarly, they need to understand how suppliers are using their funds, so they can get an accurate sense of the costs needed to deliver vital services. Procurement can enhance public wellbeing and deliver shared prosperity – but it must be approached in a way that prioritises collaboration and transparency, with greater appreciation of what different organisations may bring to the table. This will allow commissioners to better embed suppliers whose practices, values and interests are aligned with the people and places they serve. Ultimately, this will not only improve services and outcomes but cultivate a more inclusive and dynamic economy. If you want to share your experiences of public sector procurement, and/or get involved with our Social Value 2032 work, contact policy@socialenterprise.uk.

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 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 Big Issue Invest Great Western Credit Union Impact Finance Consulting Impact Hub London Ltd Music Venue Properties Limited 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 ​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​