Britain’s 5.6 million SMEs should all now be aware of the new Labour government’s vision of ‘growth, growth and more growth’. But what some may be unaware of, is the huge business growth opportunities for all the SMEs that become Social Value Ready, and the significant risks of not.
This new Labour government is clearly a ‘Social Value’ government. This is evidenced by its statements that “Sustained economic growth is the only route to our country’s prosperity.” “Changing the planning system will get the country building again and creating new jobs.” “Improving the health and wellbeing of the nation will reduce the strain on our health service.” “If Britain had grown at the average rate of the OECD economies under the Conservatives, it would have grown by another £140 billion, giving an additional £58 billion to our much-needed public services.” “We need stability for investors to bring business back to Britain to help build a steady economy.” and “We will be a government of service.” All statements reflect the principles of the Social Value model which are scored against the government’s sub criteria metrics that SVRE UK use.
Whilst we wait to see Rachel Reeves reveal her “aggressive pro-growth policies,” the way to grow British businesses remains firmly embedded in the government’s eight Policy Outcomes of Social Value. Any business wishing to bid for some of the £400 billion public services budget, which the government has specifically set aside for the more ambitious SMEs, or even retain its current public or private contracts, must be able to clearly demonstrate high-quality Social Value, firmly embedded within its business culture, and within any contract bid.
The new government will be making major planning reforms to help achieve its ambition of 1.5 million homes, built over the next parliament. This creates phenomenal opportunities to the construction industry and related services.
The Green Party won 4 seats in the election, with the more progressive Social Value cities of Brighton and Bristol applying up to 30% Social Value weighting to their public contracts. The importance of Social Value has not changed with the new government. Social Value is here to stay. In fact, Social Value policies will continue to provide the foundation of how Britain will grow.
Social Value is the perfect platform for social and economic recovery, and the 8 policy outcomes and scoring metrics framework show businesses how this should be implemented. It underpins the government’s faith in the power of SMEs who employ 60.7% of the British workforce, to play their part in this recovery, and rewarding any Social Value Ready business by improving their opportunity to win a public contract.
The government’s Social Value request for all businesses to help improve the mental health of their employees, is augmented by their commitment to improve the mental health of the nation, with 8,000 more additional mental health workers, a mental health practitioner in every school, and to see a ‘Mental Health Hub’ in every community. Real change is evidenced in our local communities, in the improvement of people’s physical and mental health, and is experienced at a personal level, even to business owners and their families, by a continued improvement of public services.
But what is the government really asking SMEs to do, to be rewarded with public contracts from their £400 billion public spending budget. SVRE UK outlines below, some of the areas that the government is asking SMEs to help them with.
- Tackle unemployment and create opportunities in the workforce.
- Improve the physical and mental health of their people to reduce the strain on the health service.
- Deliver environmental benefits to achieve net zero.
- Help their supply chains to reduce emissions.
- Be innovative and develop emerging technologies.
- Tackle poverty and economic equality.
- Create training and apprenticeships in areas of skill shortage and high growth areas.
- Increase the representation of disabled people in their workforce.
- Tackle any inequality in employment, skills, and pay, in their workforce.
- Collaborate with communities to deliver and support stronger and more integrated communities.
All reasonable requests. All government growth policies. All Social Value policies.
The new government will help all Britain’s Social Value Ready SMEs to grow, after a business has embedded their 8 Social Value policies. Social Value is here to stay. If only 10% of the 5.6 million British SME become Social Value Ready, then a significant shift in economic and social life will take place. When the Procurement Act 2023 becomes law in October 2024, and every local authority and government contract will have a minimum of 10% Social Value requirement within it, any business that is not Social Value Ready, will simply not be able to bid for any local authority or government contract. They also run the risk of a client dropping them as they are not a Social Value member of their supply chain.
SVRE UK will continue to help level up SMEs, by assisting any business to become Social Value Ready, and join our SVRE UK Business Consortium, to successfully bid for government contracts to keep public services improving.
All that a business has to decide, is whether it will become a Social Value business, or face the consequences of ignoring this seismic change in how business will be done.
Book your free SVRE UK Social Value Ready consultation below.
