Social value in local government
Social value is about getting more than just the basic service when councils spend public money. It's the idea that every time a local authority buys something or commissions a service, that spending should deliver extra benefits for the community beyond the contract itself.
The core idea
When your council spends £100,000 on, say, grounds maintenance, social value asks: "Could we get the parks mowed and create local apprenticeships, or support community groups, or reduce carbon emissions?" It's about maximising the positive impact of every pound spent.
What does social value look like in practice?
Social value can include:
- Creating local jobs and training opportunities - requiring contractors to employ local people or offer apprenticeships
- Supporting small businesses - breaking up large contracts so local firms can bid
- Environmental benefits - choosing suppliers who minimise waste, use electric vehicles, or offset carbon
- Tackling inequality - ensuring services are accessible to disabled people, or supporting organisations that help vulnerable groups
- Strengthening communities - contractors volunteering in local schools, donating surplus food, or supporting community events
The policy behind it
The legal foundation is the Social Value Act 2012 (officially the Public Services (Social Value) Act). This law requires councils and other public bodies to consider how their procurement might improve economic, social, and environmental wellbeing before starting the buying process.
Key points about the policy:
It's not optional - councils must consider social value for contracts above certain thresholds, though the Act itself applies to service contracts specifically. Many councils now apply social value principles to all procurement.
It's not just a tick-box - the government strengthened its approach in 2020 with the National Procurement Policy Statement, which pushes councils to actively weight social value (often 10-20% of the total evaluation score) when choosing suppliers.
Local flexibility - each council decides what social value means for their area. A coastal town might prioritise marine conservation; an urban area might focus on youth unemployment.
Why does it matter?
Local government collectively spends billions each year. Social value transforms this spending power into a tool for addressing local challenges – whether that's unemployment, climate change, health inequalities, or community cohesion. It recognises that the cheapest bid isn't always the best value for taxpayers if it doesn't contribute to the community's broader goals.
In essence, social value is about councils asking suppliers: "What else will you bring to our community?" and making that part of the deal.
Find out more about Bradford Council's Social Value Policy.