Overview

This bill mandates that public authorities in England and Wales consider the economic, social, and environmental well-being of their areas when awarding contracts for public services. It aims to ensure that such contracts contribute positively to the community, beyond simply achieving the best value for money.

Description

The Public Services (Social Value) Act 2011 requires relevant authorities (those contracting for public services) to consider how contracts might improve economic, social, and environmental well-being in their area. This consideration must happen before procurement begins, including stages like advertising for bids or contacting potential suppliers. The authorities must also consider how the procurement process itself can contribute to this improvement. The bill specifies that this must be done proportionately and allows for consultation. Urgent situations may allow for some flexibility, but any undue delay by the authority cannot be used to justify non-compliance. The bill clarifies that failure to comply doesn't invalidate contracts. The bill explicitly excludes certain Welsh authorities and functions from these requirements. Finally, the act amends the Local Government Act 1988 to allow for the consideration of non-commercial matters when necessary to comply with the new social value requirements.

Government Spending

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

Groups Affected

• Public authorities in England and Wales: These bodies will be required to consider social value when awarding contracts, potentially altering their procurement processes and criteria.
• Businesses bidding for public contracts: Businesses will need to demonstrate how their services contribute to economic, social, and environmental well-being to improve their chances of winning bids.
• Local communities: The bill aims to improve the social and environmental impact of public services within their communities.

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