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MPs want community benefit clauses in public sector tenders

6 May 2009

Early day motion signed by 17 members

David Lepper, Brighton Pavilion Labour and Co-operative MP, is one of a group of MPs who have called on the Government to issue guidance to public sector procurement officers urging them to consider the benefits to the community during the tendering process.

Community benefit clauses allow procurement officers to consider additional criteria such as any benefits that will accrue to a local area from giving a public service delivery contract to a local organisation.

David Lepper says:

"This government has a fine record in supporting legislation to help the co-operative, mutual and social enterprise sector. The public has shown it trusts companies which have ethical and community benefit principles – hence the success of the Co-operative Bank.

"Our Early Day Motion says social enterprises have an important role in the promotion of social cohesion and sustainable development within communities and notes 'the emergence of community benefit contracts which allow public bodies to legally insist on terms that bring extra benefits to disadvantaged communities such as work and training opportunities.'"

The move comes after Camden Council in north London announced it was trailing a new social procurement strategy, which allows bidders to be flexible when explaining how they meet council targets.

This would mean that officers would have to consider economic, social or environmental benefits when contracting out a service.