The head of the Cordant Group has called for public sector contracts to be awarded to ‘social business’ companies that agree to share profits with staff and employ local workers. In a new paper published by the think-tank Social Market Foundation, Phillip Ullmann said the law should be changed so such contracts are awarded on the basis of “social value” and not just to the cheapest bidder. Mr Ullmann, who has capped his own pay and is setting up a ‘profit pool’ to share with his staff, said that only radical changes in the rules for companies and public procurement can address populist arguments that the market economy is ‘rigged’. And highlighting the collapse of Carillion in January, which is likely to cost taxpayers hundreds of millions of pounds, Ullmann said that public sector contracts that appear to favour large companies must be ditched. ‘Flawed public procurement deals that leave … (To read the full article, subscribe below)

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Jamie Hailstone is senior reporter – NewStart