Smarter public sector procurement could release extra £56bn in social value

A new report released yesterday by Social Value 2032 has shown how smarter public sector procurement could release an extra £56bn in social value per year.

The report, written by Professor Chris White a former member of Parliament, analysed how this money could be used to level up the country, tackle net zero ambitions and strengthen communities.

Social Value 2032 is a new partnership between PwC, Shaw Trust, Siemens, Suez recycling and recovery UK, overseen by Social Enterprise UK (SEUK).

A law, the Social Value Act passed 10 years ago, ensures public bodies consider the wider economic, social and environmental impact of services commissioned.

Social value 2032’s report outlines how procurement could be used to create added social, economic and environmental impact through spending by public bodies and private companies.

It was found the UK’s public sector is only realising a small fraction of the benefits of public spending which could be generated through embedding social value into projects.

Between 2010 and 2020 an estimated £36bn could have been generated through social value, research revealed.

An estimated £760bn could have been made if social value had been implemented universally across the public sector from the beginning of the Social Value Act.

Based on these figures, it’s thought £56bn could be released annually by the public sector, which is double the government’s current financial commitment to Net Zero.

The report suggests existing public spending should be used to reduce inequalities and transition to a green economy, while large businesses adopt social value measures when working with the public sector.

It’s believed taking this approach could deliver levelling up aims faster, will make UK businesses stronger through promoting long term investment and create stronger communities.

The UK could also take advantage of the increased popularity of sustainable products this way and the country could become a world leader in measuring social and environmental impact.

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