Government Procurement

Debate between Gareth Snell and Barry Gardiner

Tuesday 2nd December 2025 Commons Chamber

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

When I had the privilege of leading a council in north Staffordshire, we tried to invent a model that allowed us to use the Public Services (Social Value) Act 2012 in exactly the way that my hon. Friend describes, so that when we were working with a registered social landlord on house building, for example, we could stipulate that a proportion of the bricks should come from the local area and that, in turn, apprentices would be working in those factories. I found that it was a matter of political will, but also that procurement officers sometimes struggled to understand how to quantify social value. Does my hon. Friend have a solution—one that the Minister could then cascade through Government—for working out the social value that we are all seeking to achieve?

[Barry Gardiner]

My hon. Friend gives an apposite example of some of the problems that can arise. I will not be so bold as to say I have the solution, but I will at least try to set out the problem with clarity, so that the Minister can ensure that his officers are able to provide a proper solution.

The model details eight types of social value, each with several areas of activity. Those cover fair work, training to address skills gaps, support for small business and community business, action for sustainability, crime reduction, overcoming barriers to work, and support for health and wellbeing. Contracting authorities can choose which of those are relevant to a particular procurement, but one element is mandatory: where a type of social value is selected, the standard reporting metric set out in the model must then be used for monitoring and reporting. Herein lies the problem. These monitoring requirements will influence how social value requirements are described in tenders and contracts. A contracting authority using a targeted recruitment and training toolkit would struggle to comply with the standard reporting metrics, as they would not relate to the tried and tested specifications that are used.

Many of the options in the social value model are related to the jobs, skills and SME opportunities that are contemplated in the national procurement policy statement. However, the model appears to be expecting procurement officials to create tender requirements whereby potential contractors will identify labour shortages and community needs and then propose ways to fill these gaps in the delivery of the contract. That may be possible with a services contract, but it is really not workable in a large, complex building and infrastructure development.

What are my concerns? First, apart from the way outputs are recorded, no specific elements of the social value model are mandatory for contracting authorities, so the provision of opportunities for people who are currently disadvantaged in the labour market is not mandatory. Contracting authorities can choose to focus on other activities contained in the social value model.

Secondly, the approach for every social value option is to require bidders for the contract to provide a comprehensive method statement at tender stage. That puts a heavy burden on potential contractors and is a huge barrier to small businesses bidding for contracts, which is perverse when breaking down barriers to SME engagement is one of the Procurement Act principles and a core mission of the Government.