Government launches review of Social Value Act

The Government has launched a review of the Social Value Act 2012 that will look at whether the legislation should be extended to cover contracts for goods and works as well as services.

The review – to be led by Lord Young, the Prime Minister’s Adviser on Enterprise – will also consider how the Act might be extended “in a way that continues to support small businesses and voluntary, charity and social enterprise (VCSE) organisations to bid for public contracts”.

The Act requires people who commission, or buy, public services to consider securing added economic, social or environmental benefits for their local area.

It only applies currently to service contracts over the EU threshold, at the pre-procurement stage.

The review team will include Chris White MP, who initiated the 2012 Act as a Private Members’ Bill.

Lord Young said: “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.”

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.”

The review team is expected to report its findings in early 2015, the Government said.