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Councillors vote for large council contracts to fund community projects and local jobs

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Hendon Town Hall

Hendon Town Hall

Barnet Council’s Cabinet has approved proposals to update its social value policy, which will require suppliers of large contracts to support community projects, as well as create new jobs for local residents.

At last night’s (18 October) Cabinet meeting, Members voted for a minimum of 5% to be reinvested in social value initiatives by suppliers, on contracts worth over £100,000. For larger contracts, suppliers must create a minimum of one local job for every £1million of contract value.

Based on the council’s Annual Procurement Forward Plan 2022-2023, the updated social value framework would have generated circa £69m of social value benefits. This is equal to one of the following:

  • 17,250 new full-time jobs paid at London Living Wage
  • 34,500 tonnes of CO2 emissions saved through decarbonisation
  • £6.9m in financial or materials contributions to support Voluntary Charity and Social Enterprises
  • 138,000 weeks of work experience or placements

Barnet Council Cabinet Member for Community Wealth Building, Councillor Anne Clarke, said:

“We care for people, our places and the planet which is why we work closely with our partners and suppliers to find innovative ways to benefit and improve our communities.

“We’ve enhanced our social value policy to ensure that any contract that is successful in applying to work with Barnet Council assumes a responsibility to invest in Barnet.

“We will also ensure that our contractors help us create new jobs for residents and help us on our journey to becoming a net zero borough.”

The Social Value Policy has been designed to support the council’s Our Plan for Barnet as it will create employment, learning and procurement opportunities for residents and local businesses, contribute to reducing poverty and community wealth building, and advance the journey to net zero.

The policy has also been designed to empower residents to be part of the decision-making process for how funds will be reinvested back into the community.

For more information: https://barnet.moderngov.co.uk/documents/s80338/Cabinet%20Report%20-%20Updated%20Social%20Value%20Policy.pdf

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Notes for editors

Using best practice modelling from across the country, a Social Value Task Group, made up of council officers from various service areas, collaborated and agreed on five additions to the policy:

  1. A minimum expectation of 5% reinvested in social value initiatives by suppliers on contracts over £100,000.
  2. A minimum of one employment outcome expectation for each million pounds.
  3. Liquidated Damages Clauses are being introduced to contracts to compensate the council for the non-delivery of Social Value commitments.
  4. To allow financial or in-kind material contributions from suppliers to Voluntary, Community and Social Enterprises (VCSEs) but will not exceed 10% of the Total Proposed Commitment.
  5. A Social Value Matrix that is embedded in the Invitation to Tender/Quote, replacing the social value question in the tender documents.

These additions will work in unison to set benchmarks, extract more value from contracts, simplify social value offers and the tender process, and ensure suppliers are compliant with their commitments.