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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

Social Enterprise UK and the School for Social Entrepreneurs recently set up a new home in London, and we’re now looking to share our collaborative office space with other like-minded organisations. We have almost 3,000 square feet on offer over two floors, with lots of natural light and retained character features from the building’s former life as an East End warehouse. Our location on Dock Street is a lively commercial area close to several train, tube and overground stations. Space is available to social enterprises looking for a home from 18 September, with rent negotiable for shared or full occupation priced at a competitive market rate. Please contact andrew.croft@socialenterprise.org.uk to find out more.

There are many factors underlying the violence across the UK following the shocking murder of three children in Southport last week. Ugly scenes of racist violence and dangerous rhetoric online, perpetrated by figures including members of our Parliament, reinforce the vital role of social enterprise in our communities. That we are shocked, saddened and even frightened goes without saying. Our thoughts are with all our colleagues, members, partners and their families affected. The question is how can we stop it, rebuild our communities, and show those caught up in destructive hatred that a better way is possible? The numbers of people actively speaking out for peace, for inclusion, for community, show what we all know: fascist noise is an unwelcome splash in an ocean of caring, hard-working, inclusive and wonderfully diverse humanity. Social enterprise will continue to surf that wave. We call on the UK Government and political leaders of all parties to always take a stand against racism and Islamophobia. This hate must not be tolerated or normalised, to ensure that all those from racialised communities feel safe and that those fleeing danger are welcomed. When the immediate violence subsides, social enterprises will be there in force to rebuild. This blog outlines five examples of how social enterprises are part of the solution, and how to support them to be as helpful as they can be. 1. Social enterprises are embedded in communities and deliver for them Social enterprises run community assets that bring people together and support their needs, from pubs and cafes, to sports venues and shops. They support disadvantaged and vulnerable people to access support and services, they run programmes in schools and beyond to grow children’s education. They sell products that allow them to cross-subsidise or fund the work of others. From reducing period poverty to supporting single parents, care leavers, ex-veterans, and young people out of work, social enterprises have deep networks and trust in the communities where they operate. They bring people together and help move lives forward. While fascism stokes division and conflict and offers nothing but false promises, social enterprises build unity and embrace diversity to deliver shared prosperity for everyone. Gareth Hart and Mel Tucker, directors of our member Iridescent Ideas CIC and co-leaders of Plymouth Social Enterprise Place, said: “We watched with deep dismay, sadness and anger as our beautiful city of Plymouth joined other cities and places across the UK experiencing racism and violence on our streets. We have seen many representatives from the local social enterprise community posting messages of solidarity online and several attending the counter protests in the city. There are many social enterprises in Plymouth such as Plymouth Hope, Diversity Business Incubator, Nudge Community Builders and WonderZoo who campaign and work to promote inclusion and unity. We hope that future investment programmes support these types of activities. Looking after people and community is at the very heart of what social enterprises do. Hate will not conquer hate. As a group we show that we are stronger together.” 2. Social enterprises are solutions-focused and innovative 68% of social enterprises brought new products and services to market in 2023. Social enterprises spot need, plug gaps and figure out ways where no one else has succeeded. Social enterprises seek problems to solve; rather than running away, they crowd in. They work with people across the criminal justice system, rehabilitating and preventing. They support refugees and asylum seekers, recognising that these are people who’ve suffered but have much to offer. They support veterans, knowing that it’s hard to transition from military service to civilian life. Where others see problems, social enterprises find opportunities and generate returns. Oldham Social Enterprise Place is no stranger to racial tensions and has a history of supporting refugees and disenfranchised groups. Organisations such as Upturn, a multi-award-winning social enterprise that supports disadvantaged communities through employment and business support and community engagement programmes, play a key role in community cohesion. Anwar Ali, co-founder of our member Upturn and lead for Oldham Social Enterprise Place, said: “Infrastructure organisations, such as Social Enterprise UK and the social enterprise places network, provide essential support, enabling social enterprises locally to address social challenges effectively. By fostering inclusivity and resilience, social enterprises help heal and strengthen communities.” 3. Social enterprises enhance public service provision Social enterprises have held up our crumbling public services for years by reinvesting profits, joining up services and needs, and piloting innovation. Going forward, they will be crucial to running and improving vital services in communities across the country. From children’s homes to social care, affordable energy and housing, to inclusive public transport - making sure that social enterprises can deliver for local authorities and central government is key. Social enterprises should be recognised and championed for their role in delivering the services we rely on. Government should improve their commissioning and procurement processes, so that more social enterprises are brought into public supply chains, and that government spending is being used effectively to improve public services, while maximising the social benefits that these businesses generate. 4. Social enterprises contribute to inclusive economic growth Social enterprises reflect the diversity of our society.  They are more likely to be led by women and people from ethnic minority backgrounds, more likely to hire people from the communities they serve, and more likely to operate in areas that face higher levels of economic deprivation and disadvantage. Many social enterprises actively recruit those furthest from the labour market, providing training as well as flexible and well-paid work that is central to minimising poverty and disillusion for marginalised groups. By investing their profits back into their communities, social enterprises drive economic growth and renewal. This is the foundation for a more inclusive society, with wealth being built to enhance the lives and prospects of every community. Jennifer Van der Merwe, Director at Kindred LCR and part of the Liverpool City Region Social Enterprise Place, said: “Cohesive communities are vital for a good economy, where everyone is supported to thrive. We recognise and celebrate the work of all the socially-trading organisations serving our communities in Liverpool and Merseyside towards community cohesion, and we will continue to encourage and support inclusion and cohesion in the communities in which we work together.” 5. Social enterprises have done it before After the 2008/9 financial crisis, during the Covid-19 pandemic, throughout the energy price and cost of living crisis - social enterprises have proved resilient, and demonstrated their commitment not to shareholders or profit but to people and places in need. They pivoted their models to provide vital support, they cut costs through efficiency and innovation not redundancy, and they reached out to the people most at risk. Businesses with values and ambitions aligned to the interests of society are essential to navigate through these difficult times. Social enterprises not only offer tangible solutions to the challenges we collectively face but are an antidote to the division, fear and hatred of the far-right. Terry Murphy, CEO of our member Sheffield Social Enterprise Network and chair of Sheffield Social Enterprise Place, said: “As a united front, the leaders of Sheffield's VCFSE sectors stand in solidarity with those nearby in Rotherham and others across the country who have suffered from this senseless violence. Our communities have shown remarkable resilience and unity in the face of these attacks. Looking ahead, the Sheffield Social Enterprise Network is unwavering in our commitment to strengthening our collaboration. Recognising that these events are symptoms of a broader systemic problem, we believe that nurturing hope can provide the motivation for change - while promoting collaborative systems change can address the structural barriers that sustain polarisation, valuing the diversity of perspectives and experiences that each of us brings.” If we can provide any support to your social enterprise at the moment, please let us know. Please also share with us your work within affected communities and information we can help take to policymakers by contacting membership@socialenterprise.org.uk.

With the UK Government now promising a ‘New Deal for Working People’ that will overhaul existing conditions and strengthen workers’ rights, the world of work is at the heart of political debate - but what does good work look like? Our latest research suggests that social enterprises can offer a blueprint for a better way of doing business. Our new paper, published in partnership with the Living Wage Foundation, delves into the quality of employment created by social enterprises compared to the wider business community. From training and pay to flexibility and inclusion, the report finds that social enterprises represent business at its best  – which helps them recruit and retain staff. While millions of UK workers take home wages that won’t cover basic necessities, social enterprise employers are far more likely to pay the real Living Wage (RLW). Eight in ten social enterprises pay the RLW (currently £12 across the UK and £13.15 in London) compared to just one in nine employers as a whole. They are often also set up to create jobs and opportunities for those furthest from the labour market such as disabled people, those with mental health problems and the long-term unemployed. Once in work, the research showed that social enterprises are more likely than other businesses to offer training and development opportunities, with 77% providing this compared to just 60% of other businesses. Social enterprises are also shown to have a diverse range of ownership and leadership models, which are more likely to provide workers with a voice to influence their organisation; 38% of those with business boards reported that membership included employees. A dedication to changing employment practices can be found in social enterprise Clean for Good, which is featured as a case study in the report. It shows how a social enterprise can challenge practices in the traditionally exploitative cleaning sector through a dedication to paying the RLW. Satisfaction rates at the business are regularly in excess of 85%, and all of its cleaners enjoy terms and conditions above the statutory minimums. Instead of a race to the bottom, it’s using its position as a business dedicated to the wellbeing of staff as a factor in winning new contracts. Our head of research Dean Hochlaf, who led the report, said: "Good working conditions are the foundation of a stronger, fairer, more prosperous economy – and it’s clear from this in-depth study that social enterprises are leading the business community in setting higher standards for their workforce and creating better employment opportunities for everyone. In turn, social enterprises are reaping rewards from recruitment and retention to morale and productivity, showing that good work can be good for business.”

Our new government put forward a long list of Bills in the King’s Speech, many of which hold significant potential value for progressing social enterprise – from corporate governance reform to green investment, workers rights to mental health support, and community ownership to skills development. Overall, it seems our political leaders have nearly grasped that mission-led business can be key part of the answer to many of the challenges we - and they - face, but still not yet fully realised our potential.  The proposed Employment Rights Bill helps align mainstream business with practices already common among social enterprises. Social enterprises are more likely than other businesses to pay the Real Living Wage, offer flexible working and include staff in decision-making. Whereas mainstream businesses have a knee-jerk opposition to improving rights, social enterprises focus on addressing barriers, such as limitations imposed by public sector contracts. Proposed legislation to improve business behaviour and delivery for consumers on water [1], football, buses and rail offer an eclectic approach from nationalisation to sanctions. However, there is a common theme in focusing on purpose rather than profit across public services, utilities and community assets. While greater transparency is welcome, the Bill needs to be more ambitious, pushing all businesses to behave well rather than just trying to stop the worst offenders from exploiting gaps. Proposed corporate governance legalisation, for instance, is a missed opportunity to join the dots between poor performance of public service provision and regulation. It is also not yet clear how the government’s role in derisking private investment - as proposed across the National Wealth Fund, British Business Bank, UK Infrastructure Bank and more - will trickle down to SMEs and social enterprises, or how these huge funds will be owned and governed for the longer term. On Great British Energy, plans are still a bit muddled. The King’s Speech specifically said the government will develop, own and operate assets – rather than making investments, which was previously proposed. Either way, we await the detail on opportunities for community energy and whether communities will be able to take forward projects on similar terms to local authorities.    Both the Product Safety and Metrology Bill and Digital Information and Smart Data Bill provide opportunities to ensure democratic and inclusive access to technology and data – as set out through the Future Economy Alliance’s work [2], which Social Enterprise UK has helped convene. The English Devolution Bill offers potential to build on what we’ve already seen in the Devolved Nations and Mayoral Combined Authority areas, whereby strategic social enterprise support has been much stronger than in Westminster. We await more clarity about which departments and ministers will take responsibility for social enterprise, and where the commitment to grow diverse business models - doubling coops and mutuals - will sit. [1] Letter: Water crisis is a chance to reset business norms (archive.ph) [2]https://static1.squarespace.com/static/64a584ea841fde6445ba3478/t/65e208500a24c92b7c7e764d/1709312083037/Business+Plan+for+Britain+full+report.pdf

Billions of people will vote in national elections this year – in 97 countries around the world from the US to France, India, Brazil and beyond. There’s a lot happening. For some of us, these election campaigns are overlapping with the cricket 2020 world cup, then the Euros, which in turn run into Wimbledon, and the Tour de France, which will lead into the Olympics. For others, maybe House of the Dragon is competing with Glastonbury and Co-operative Fortnight, or whatever else you’ve got going on. It seems to be a busy, overlapping, even overwhelming and certainly confusing time. Anyway, congratulations to our new Labour government in forming a historic majority in Parliament. What does this mean for social enterprise? What have Labour said about us?  Well, there are some exciting signs, as well as some rather messy, fuzzy and confusing messages. Excitingly, the Labour manifesto makes a clear commitment to “support diverse business models” as well as aiming to double the size of the UK’s co-operative and mutuals sector. This is fantastic news. Any advocate for social enterprise - co-operative or otherwise - should celebrate this explicit commitment to alternative ownership models from the UK government, for the first time in a long time. At Social Enterprise UK, we are pleased and proud to have worked with our friends at Co-operatives UK and the Co-op Party in pushing both the tighter focus on co-ops and the broader agenda around business diversity. Meanwhile, Labour grandees are talking up the idea of an Office for the Impact Economy[1]. Labour mayors are - not just talking about – but also supporting the social economy in Bristol and London, business for good in West Yorkshire, and the VCSE sector in Greater Manchester. Our partners in the Future Economy Alliance have come together under the banner of mission-led businesses (which echoes Labour’s talk of mission-led government) while others have decided they like the term purpose driven business. There’s a lot going on. These terms can be confusing. Of course they overlap. Many of our members are social enterprises and co-operatives and mutuals, driven by purpose and focused on a mission. Ultimately, even while we may pine for greater convergence and consistency in language, the good news is that we now have the government’s manifesto, as well as powerful regional and national politicians, focused on our movement, seeing social enterprise and family as part of the solution. We must await what this means in practice for helping social enterprises grow and thrive. Will these promises help smooth the flow of funding and finance, improve procurement and public services, level the playing field and the business landscape, and bolster the capacity of entrepreneurs and teams working in social enterprises? As the leading national voice for social enterprise, we will of course work to help turn the government’s policy promises into practical and useful support for our members and beyond. The new government has set out various other policies in its manifesto. Many of our members will be pleased to see the commitment to more care delivered locally, to spotting problems earlier and shifting resources to community services. Others will have questions about using public funds to de-risk private investment, with concerns about socialising risk and privatising reward. Some will want to deepen commitment to addressing the climate emergency. A lot would like a little less talk of UK PLC and a more imaginative conception of UK CIC. Some of us are impatient for deeper, more structural transformation across our economy, democracy, and country. Today’s change of government is just the start. By Dan Gregory - Director at Social Enterprise UK [1] https://www.cityam.com/labour-must-partner-with-businesses-in-the-impact-economy/ https://www.probonoeconomics.com/what-would-an-office-for-the-impact-economy-mean-for-charities

Corporate supply chains are changing. Big businesses increasingly look at environmental, social and governance (ESG) considerations when it comes to who they spend their money with, and we’ve been at the heart of this shift. Our Buy Social Corporate Challenge is now entering its ninth year of supporting big businesses to bring social enterprises into their supply chains. Since launching at Downing Street in 2016, £477 million has been spent with social enterprises by 30 major corporate partners across all business sectors. The premise of the Challenge is simple: working with corporates to use their core business spend to create positive social and environmental impact. Buying from social enterprises allows companies to make progress across ESG priorities, through spending their money with organisations dedicated to addressing social issues and protecting our planet. Our latest annual report shows the Challenge had the most successful year ever, as partners spent £123 million with social enterprise suppliers. These range from businesses tackling period poverty and re-purposing old office furniture to those creating jobs for people marginalised by the labour market - such as those experiencing homelessness, refugees and the long-term unemployed. Around 4,515 social enterprise jobs have been created thanks to contracts won through the Challenge, with 992 social enterprises supplying Challenge partners last year alone. The number of trading relationships between social enterprise suppliers and Challenge buyers has increased by 74% in just the last two years, showing rising interest in social procurement. Charlie Wigglesworth, Deputy Chief Executive of Social Enterprise UK, said: “These latest results show that our Buy Social Corporate Challenge is not some well-meaning experiment for businesses willing to try something different – it’s a powerful force for change in corporate supply chains. We’re proud to see social enterprise at the forefront of this transformation. “Crucially, every single one of our corporate partners reported that social enterprises deliver comparable or higher quality products or services compared with other suppliers – a glowing endorsement and reminder that doing business with purpose beyond profit doesn’t mean compromising on standards. “With millions being reinvested in people and planet through our Challenge and the wider social procurement movement, we hope our vital work continues to inspire the public and private sectors to take action for the future of business.” Click here to read the Buy Social Corporate Challenge Year 8 Impact Report The Buy Social Corporate Challenge partners are Amey, AstraZeneca, AXA, CBRE, Compass/Foodbuy, Co-op, Deloitte, Equans, EY, John Sisk & Son Ltd, Johnson & Johnson, KPMG, Landmarc Support Services, Lendlease, Linklaters, LV=, Mitie, Nationwide, Nestle, NFU Mutual, PwC, Robertson Group, SAP, Siemens, Sodexo, The Crown Estate, Wates Group, Willmott Dixon, and Zurich Insurance Group. To find out more about our social procurement work and how your business can get involved in our programmes click here or contact socialprocurement@socialenterprise.org.uk