Social Value Act set to boost the UK’s social economy 

Opportunities for voluntary community and social enterprise sector (VCSE) organisations to deliver more public services in the UK were given a boost with the introduction of the Public Sector Social Value Act, which came into effect from January 2013.

This significant legislation requires public sector commissioners to take account of social and environmental impact and outcomes – alongside economic measures – when designing contracts and evaluating tenders. VCSE sector organisations are often much better placed to demonstrate how they will provide social value, because they are not motivated purely by profit, or answerable to shareholders. Indeed, social impact is at the heart of what they do.

Devon County Council – the UK public sector SEEING Project partner – is committed to improvements in this area and has established a Social Value group, comprising local stakeholders from across the sectors. They have met with commissioners to discuss how social impact can be defined and measured taking into account some of the priorities for the county, which is one of the largest in the UK and very diverse.

“The Social Value Act is helping us focus on opportunities to work with a more diverse supply chain, and also to target impact at a local level” comments Sofie Francis, from Economy & Enterprise at Devon County Council. “In areas such as the coastal town of Ilfracombe, residents are already taking control of localised budgets, and starting to see the greater benefits within the community”.

One of the UK’s social enterprise partners Well UK is very experienced in public sector commissioning. The organisation co-ordinates social care activities, which are provided by a consortium of fifteen social enterprises in Devon. Together they deliver a range of services supporting older people and those with mental health, physical and learning disabilities. “Our delivery partners create social impact every day” comments Phil Aubrey, Programme Manager. “Much of the work they do is in enabling people and helping them to stay in their own homes.”

In addition to the opportunities for VCSE organisations, the Social Value Act also encourages private sector suppliers to consider and measure their social impact. Larger suppliers are often used to winning public sector contracts based on price, but have more work to do to evidence their contribution to the community, or how they protect the environment. Peninsula Enterprise – the UK private sector SEEING Project partner – is increasingly working with VSCE partners to deliver services, for example supporting businesses to access Superfast Broadband, and is developing its own strategy around social impact.

The Act is a very new piece of legislation and it is therefore very early days in terms of implementation. Its impact will not be known for some time and the Act itself has left it fairly open for authorities to interpret as they see fit.  The Act only requires that Local Authorities make “consideration of” social, environmental and economic impact and therefore there is a danger that it could be applied in a superficial way and still meet this requirement.  However, if implemented in the spirit it is intended, the Act has the potential to significantly boost the social economy and cross sector working.

Social Enterprise City’ award for Plymouth

Plymouth, Devon’s largest city, is announced as one of the UK’s first ‘Social Enterprise Cities’. The accolade, granted by Social Enterprise UK – the national body for Social Enterprise – recognises the extent and quality of social enterprise business activity in the city. Bristol, also in the south west of England, has been awarded the status as well.

Plymouth’s Social Enterprise City status will raise the profile of the sector within the city and beyond. There are an estimated 150 such firms in Plymouth that collectively employ around 6,000-7,000 people and injects half a billion pounds (0.6 billion euros) annually into the local economy.

Gareth Hart, Chair of Plymouth Social Enterprise Network (PSEN) – which led the bid for the award, said: “This is fantastic news for Plymouth which proves we are one of the nation’s social enterprise capital cities. This award is recognition for the hard work of the scores of social enterprises in the city and those who support them. What’s happening in Plymouth can happen right across the UK. This bold, imaginative approach can change the way we think about economic development in towns, cities and regions.”

The award is part of a ‘Social Enterprise Places’ scheme being run by Social Enterprise UK. The scheme recognizes that there are towns, cities and areas that wish to promote their status as ‘hotspots’ of social enterprise activity. In order to become a Social Enterprise City a number of criteria must be met, committing the town to promoting the social enterprise message, and encouraging local people and local businesses to buy from social enterprises.

Peninsula Enterprise – one of the SEEING Project’s UK partners – runs ‘Social Enterprise Focus’, a programme which provides advice and guidance to aspiring social entrepreneurs and established social enterprises in Plymouth, supported by funding from ERDF and the City Council.

Tudor Evans, Leader of Plymouth City Council, comments; “It is great to see us recognised as one of only two social enterprise cities in the country. Everywhere you look in Plymouth and see people working together for the good of their city and their community there is likely to be a social enterprise.”