A Hull business leader has underlined a real need for social value principles to be reviewed as a government shake-up of outsourcing is anticipated.
Following reports that Jacob Rees-Mogg is preparing to shake up long-standing methods as part of his new role as Minister for Brexit Opportunities and Government Efficiency, a sector 'heavyweight' in the city said now could be the time.
Gerard Toplass, executive chair of The 55 Group, which includes social value specialist Loop and construction framework provider Pagabo.
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And he said that while the rhetoric around such changes can be incendiary, there is justification for a new approach.
Mr Rees-Mogg is understood to be questioning the delivery of ethical principles supposedly built into major public contracts.
“The Social Value Act itself has been around for a decade now but hasn’t really been fully adopted, but the Construction Playbook has made everyone re-examine their approach towards innovating in that field,” Mr Toplass said.
“I think what Jacob Rees-Mogg is doing is trying to have a grown-up conversation about how we move this forward. There is clearly still an understanding within government that there is positive potential for every pound spent on procured projects, so this is unlikely to be a wholesale move away from social value, particularly as it is a key cornerstone of levelling up and achieving net zero.
“However, there is a serious need for better understanding of the impact and outcomes from social value, as figures are often used up front to try and win bids but are then not adequately followed through on.
“With a lack of quantifiable measurement, throwing big social value numbers around can sometimes be seen as an unfair advantage for larger firms that have the resources and teams in place. For example, a large contractor with a 1,000-strong workforce could say at procurement stage that it will commit to using 10 apprentices on a certain scheme, while a smaller firm of 100 employees says it can commit five. The absolute numbers look better for the larger firm, but you could argue that the smaller firm is taking social value more seriously as it is a bigger percentage of its workforce.
“This review is a chance for Mr Rees-Mogg and his team to look at finding ways to level the playing field when it comes to social value and start encouraging the industry to take a more macro approach to measurement. I would also like to see efforts to support SMEs that don’t always have the resources in bidding generally. We need to make it easier for all companies to demonstrate social value.
“When a company sets out what it’s going to do at procurement stage, let’s start properly measuring its impact. Government procurement is a powerful tool to do good - the best procurement teams know this and will integrate outcomes and impacts in the way that best serves the local area.”
Mr Toplass, a built environment expert, has recently been working with Hull West and Hessle MP Emma Hardy on the bid to make the city the co-working capital of the UK.
He has recently led The 55 Group’s move in Old Town, taking on the former HSBC at 55 Whitefriargate and transforming the vacant Grade II listed building with the support of significant public funding.
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