Parliamentary.ai

Overview

This bill mandates that UK public authorities consider the economic, social, and environmental well-being of their areas when awarding contracts for public services. It aims to ensure that contracting decisions promote broader societal benefits beyond simply the lowest cost.

Description

The Public Services (Social Value) Bill requires relevant authorities (those that award public service contracts) to consider how procurements can improve the economic, social, and environmental well-being of their area. This consideration must occur before the procurement process begins, including steps such as advertising for tenders or contacting potential bidders. The bill specifies that authorities must weigh the proportionality of incorporating these social value considerations. The bill also allows for consultation on these matters. Urgent needs may justify exceptions to these requirements, but undue delays by the authority cannot be used to justify non-compliance. The bill doesn't invalidate contracts awarded in non-compliance. Importantly, certain Welsh authorities are exempt. The bill amends the Local Government Act 1988, clarifying that consideration of non-commercial factors is permissible to meet the obligations imposed by this bill.

Government Spending

The bill states that any expenditure incurred by ministers, government departments, or other public authorities as a result of this Act will be met from money provided by Parliament. No specific figures are provided in the bill text.

Groups Affected

• Public Authorities: Will be required to consider economic, social, and environmental factors when awarding contracts, potentially leading to changes in procurement processes and outcomes.
• Businesses bidding for public contracts: May need to adapt their bids to demonstrate the social value of their offerings.
• Local Communities: Could benefit from improved economic, social, and environmental outcomes resulting from contracts awarded with social value in mind.
• Welsh Authorities (some): Are exempt from the bill's requirements.