A Government review of the Social Value Act could see its extension to cover more public sector contracts.
Lord Young, the prime minister’s adviser on enterprise, will lead investigations into the Act, which requires people procuring or commissioning public services to consider securing further economic, social or environmental benefits for the local area.
Ministers highlighted efforts by Wakefield Council, which selected a new school milk supplier that provided both lessons on healthy living and work opportunities for the long-term unemployed.
Lord Young’s review will examine whether the Act should be widened to include contracts for goods and works as well as services. Consideration will also be given to how any reform could continue to support small businesses and voluntary, charity and social enterprise (VCSE) organisations bid for public contracts.
‘The Government has been facing growing calls to extend the Social Value Act and I am delighted that this review will give us the opportunity to fully consider those ideas, thinking about how we can achieve the aims of the Act. I am keen that this does not add any regulatory burden to small businesses, social enterprises, or VCSEs,’ said Lord Young.
Minister for civil society, Brooks Newmark, added: ‘The Social Value Act is already making a significant impact.
‘There are some great examples of how commissioners are using it effectively and there are growing numbers of case studies showing good practice.’