Government Procurement

John Slinger Excerpts

Tuesday 2nd December 2025 Commons Chamber

[Barry Gardiner]

I am heartened. When some hon. Members approached me about this Adjournment debate, I said, “Look, it’s extremely boring—you won’t want to be in it,” but to have had three interventions that have been so apposite is really gratifying.

An alternative approach would be for most social value requirements to be included in the tender and contract documents as conditions relating to the delivery of the contract, rather than an item that is scored at the tender stage. Here, a method statement would be required shortly after the award of the contract, but only the winning contractor would have to prepare it. I hope that that goes some way to answering the questions from my hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell) and for Leeds South West and Morley (Mark Sewards).

My third concern is that the social value requirements may not be deliverable in large construction contracts. These have many layers of employer involved in delivering the contract and a significant turnover of employers and workforces at different stages of the contract. That is very different from the majority of service contracts. Key issues arising from this could include: ensuring that the subcontractors who employ most of the workforce deliver the social value requirements and provide the necessary monitoring information; getting highly mobile subcontractors to recruit and train locally based people; and ensuring continuity of employment and training for new entrants when subcontractors have limited engagement with the project and the training requires one or two years of on-site support. The current social value model demonstrates no awareness of those issues. If it feels impractical to achieve jobs and training on a particular project, procurement teams may opt for alternative social value outputs or opt out altogether. That could undermine the high priority given to providing opportunities for disadvantaged groups in the delivery of major projects.

Fourthly, the social value model uses terms such as “people under-represented in the labour market” and “disabled people”. Most applicants from these groups will not be identified on any register or easily categorised for recruitment and monitoring purposes. Indeed, they may not want to be labelled in this way, whatever the standard metrics require. In the toolkits to which I have referred, the focus of attention is on local people’s need for employment and for in-work training and support. Often months or years of employment is needed if new entrants are to become fully productive and embedded in their trade. Targeting comes by recruiting from training and support organisations that work with the target communities, especially local organisations.

Fifthly, the term “community” may have widely different meanings. Where there is a locality element in the model’s mandatory standard reporting metrics, “community” is defined as a UK region, but people living close to a major infrastructure development probably see their community as having much narrower boundaries. These more targeted benefits seem closer to the Government’s missions as described.

There is an additional question. The annex to procurement policy note 2, from February this year, states that employment opportunities arising from a contract must be advertised via the Department for Work and Pensions’ “Find a job” website, as well as local jobcentres. In the past, the website has offered the employer suitable candidates from anywhere in the UK, often within hours. That creates additional barriers for local new entrants, as they are competing with candidates from a very wide area. If the requirement is still applicable, this issue needs to be addressed by the Department for Work and Pensions.

[John Slinger (Rugby) (Lab)]

I thank my hon. Friend for bringing this important subject to the House. Will he join me in welcoming the announcement that is hot off the press this evening from the Cabinet Office and the Ministry of Housing, Communities and Local Government about how councils, police and fire authorities in England will now be able to reserve bidding for lower-value contracts to local and UK suppliers? This is all about opening up Government work to small businesses and enabling—exactly as he was saying—small businesses and local people to get high-skilled jobs from such Government procurement.

[Barry Gardiner]

Goodness me! It is very rare that I stand in this Chamber and get such immediate results from the Government. If this is a precedent, it is one that I wholeheartedly welcome. I am delighted to hear what my hon. Friend has just reported is the new Government policy. As I was saying about the Department for Work and Pensions, defining some job vacancies as “new entrant trainee opportunities” and naming local organisations as potential recruitment partners can increase opportunities for local people without damaging competition, and he has just mentioned a very good example. This is especially important in the context of the youth guarantee announced by the Government in September. Likewise, local business support organisations can help increase opportunities for local SMEs. Many combined authorities have a role to play in promoting good practice, on a shared basis, in their regions.

Finally, I am concerned that the current model provides a complex shopping list of what social value might be sought. It leaves procurement teams to unpack what each will involve and then turn that into a tender requirement. This is in a context in which many of the procurement staff involved, especially in works contracts, will be new to social value. I am struck by the critique of the social value approach that was made in the 2024 report published by the Centre for Local Economic Strategies, one of the leading organisations in the field. It says that

“an entire industry has grown up around the demand for methods, measures and consultancy time to help understand and measure social value. As a result, there are concerns that the original purpose of social value and the nuanced social dynamics involved in measuring its impact may be lost to bureaucracy and rigid frameworks.”

I think that sums it up perfectly.

In my view, the current social value model will bring a bonanza for consultants. Both contracting authorities and contractors will feel that they need to seek help to engage with these relatively new requirements. It would be far more efficient to simplify the requirements and equip procurement teams with the tools, systems and training to put these into contracts and monitor delivery.

I have three urgent questions for the Minister to consider. First, will the Government review the social value model to reduce the negative impact on small businesses seeking services contracts? Secondly, will the Government, perhaps working with the National Infrastructure and Service Transformation Authority, commission urgent work to develop a targeted recruitment and training approach for large works contracts, using the experiences gained through the toolkits elsewhere in the UK? Thirdly, will the Government clarify whether all vacancies on works contracts have to be listed on the DWP “Find a job” website, and if so whether employers are able to exercise a local preference when delivering a social value obligation?