How social value is changing public contracts

 At SUEZ recycling and recovery UK, we welcome this shift. Social value has been central to how we work for many years, and these reforms give it a greater weight in public procurement. But while we support the direction of travel, we also see risks if the rules become too rigid or narrowly defined.

Earlier this year the Procurement Act 2023 became law. Building on that, the Cabinet Office launched a consultation called ‘Growing British Industry, Jobs and Skills’. Together with a series of new Procurement Policy Notes (PPNs), these changes are reshaping the way public procurement works. With public procurement accounting for about a third of all government expenditure, the impact will be felt widely across industries and communities.

Bigger contracts, higher expectations

If you’re bidding for contracts worth more than £5 million, you’ll face new requirements. The Government is proposing to include a mandatory question on how you’ll contribute to jobs, skills or opportunities, and it will count for at least 10% of the overall score. At least one social value KPI will also be built into the contract, with progress reported publicly. Standardised measures will be introduced too, to make sure results can be compared more fairly across contracts.

This is a welcome move to give social value more weight. But there’s a risk if the focus is too narrow. For example, if social value is judged on jobs and skills, the bigger picture could be lost. Social value also covers environmental gains, local partnerships and community benefits. A bit of flexibility is also needed to make sure innovation and broader impacts aren’t overlooked.

Supply chains, payments and place

The proposed changes also look at how money flows through supply chains. Authorities spending more than £100 million annually will need to publish three-year targets for their direct spend with SMEs and VCSEs (voluntary, community and social enterprises), reporting progress each year. Reporting will also extend to payments under £30,000. That could boost transparency, but unless the government’s proposed digital system is ready in time, it risks creating extra admin for already stretched authorities.

For us, this direction of travel builds on the partnerships we already have: 57% of our supply chain spend goes to SMEs and we invest over £1 million each year with VCSEs.

But the proposals set a stronger expectation across the market, opening the door for smaller organisations to benefit, but questions remain over how easy it is for them to interact in this complex system.

Another proposal is to set a clear expectation on where social value is to be delivered, such as when it’s within the contracting authority’s own area. While clarity is good, limiting benefits to a single geography risk reducing impact elsewhere. If suitable SME or VCSE partners aren’t available locally, it could undercut the very aims of the reforms. Flexibility here would help achieve the broader mission of growing and nurturing the economy.

A decisive moment

Taken together, these reforms show that social value is no longer an optional add-on. It is becoming a deciding factor in who wins contracts, how services are delivered, and how success is measured. For contracting authorities, it helps boost fairness, sustainability and growth. For suppliers, it’s a call to show how their business makes a difference beyond the bottom line.

While much of what’s proposed is positive, the balance between consistency and flexibility will determine how successful the reforms are. Done well, they can ensure public procurement delivers more than services, but lasting benefits for people, planet and the economy.

For more information about how SUEZ is taking the lead in the industry by putting social value at the core of our business, click here.