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A bill presented by Chris White MP to require the secretary of state and local authorities to publish strategies in connection with promoting social enterprise; to enable communities to participate in the formulation and implementation of those strategies; to require that public sector contracts include provisions relating to social outcomes and social value; and for connected purposes.
This bill will require the government to generate a central strategy on encouraging social enterprise across the country as well as requiring local authorities to generate their own local strategies with community involvement. The bill will further seek to change procurement policy by the public sector and mandate the inclusion of social outcomes and social value.
Social enterprises, according to the government, are "businesses with primarily social objectives whose surpluses are principally reinvested for that purposes in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners". According to the Social Enterprise Coalition there are 62,000 of such organisations in the UK, most of them small and medium sized businesses, contributing over £20 billion to our economy and employing nearly a million people.
This bill will seek to create one consolidated national strategy to develop the social enterprise sector within our economy. In having one clear strategy, central government will be better able to co-ordinate, creating an environment where social enterprises, charities and other third sector organisations can flourish. Local authorities would also create their own strategies to make the most of this important resource.
In changing procurement to include social outcomes and social value, the bill will be building on the work already undertaken by some areas of the public sector such as the NHS. Social values are additional benefits to the community that can result from the procurement process on top of the benefits gained directly from purchasing goods, services and outcomes.
Chris White MP said: "Social enterprises are becoming an increasingly important part of our economy. They already work well in a range of sectors from health and social care to sport and housing. This bill aims to ensure that government at all levels supports this important sector."
"As we face difficult economic times, we have to do more for less. In placing social value at the heart of public sector procurement we can ensure that we can make the most of public money, not only in the goods and services it purchases but the positive social benefits that can be created by community aware procurement and commissioning. In placing a social conscience within procurement we can bring greater benefits to local communities and reduce costs in the long term."
Mr White added: "The 'Big Society' is something that I believe in and social enterprises are the embodiment of this concept. As community facing organisations, they seek to combine quality services that we all need with a commitment to serving the communities they work in. This bill aims to lay the foundations for social enterprises, voluntary organisations and third sector to build the 'Big Society' we all want to be a part of."
Progress:
House of Commons
1st reading: 30 June 2010
2nd reading: 19 November 2010
Article Comments
Speaking as the director of a small social enterprise, experience of participation to date in both central and local government could best be described as obstructive.
In one local instance an auditors investigation is now being made into the misuse of council funds in setting up a healthcare SET.
We have regional support agencies who ignore efforts to communicate and engage, Others in government helping themselves to intellectual property to serve up as their own and then exclude the owners.
We cannot have grant funded support bodies which act selectively In short we cannot establish social enterprise on a foundation of dishonesty.
Jeff Mowatt
1st Nov 2010 at 11:02 am
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