Member Article

Keep Trade Local through the Social Value Act urges North East Federation of Small Businesses

The Federation of Small Businesses (FSB) in the North East is urging local authorities across the region to use the Social Value Act to help small businesses and social enterprises win more business.

The Social Value Act came into force in January 2013 and places a duty on public bodies to consider social value before procuring goods and services. This means that public bodies must consider how what is being procured can help improve the economic, social and environmental well-being of the area.

The FSB has kicked off a regional campaign to get all twelve local authorities across the North East to work with small businesses and social enterprises to help them win more business.

To help achieve this we’re calling on all local authorities in the North East to:

• Embed the principles of the Social Value Act within the economic strategy to ensure the opportunities are met across the Council
• To provide better guidance on how social value will be measured and how small businesses and social enterprise can meet this through updating the How to Do Business guides
• Work with small businesses and social enterprises to encourage more to work in consortia on opportunities to supply local authorities
• Include more social enterprises with supply chain opportunities for each Authority with a target of 10% within the next three years
• Undertake better market engagement with small businesses including social enterprises on the opportunities that are on the horizon

Ted Salmon, FSB North East Regional Chairman, said:

“We know that using small local suppliers generates significant economic returns to the local area. For every £1 spent with a small or medium-sized business (SME) 63p was re-spent in the local area compared to 40p in every £1 spent with a larger business.

“The Social Value Act affords a great opportunity for local authorities in the North east to demonstrate a commitment to helping local suppliers potentially win more business.

“There has already been some great work done across the North East to help small and micro businesses in the region win more business through the work of the North East Purchasing Organisation and through campaigns such as Buy Sunderland First.

“With the enactment of the Social Value Act there is a great opportunity for local authorities to go even further in their support of small businesses and social enterprises.

“We have already seen other local authorities across England take a strong lead on implementing the Social Value Act particularly in Liverpool, Birmingham and Croydon.

“We’re calling on the twelve local authorities in the North East to replicate this activity ensuring that as a region we’re leading the way on helping more small businesses and social enterprises win more contracts.

“This work has already started in places like Sunderland where opportunities up to the EU threshold will be done on a quotation basis and in Durham through the whole life value programme.

“We believe the rest of the North East local authorities can at least match and possibly exceed this. Over the next few months we’ll be working with all twelve local authorities to help the North East lead the way in helping small businesses and social enterprises lead the recovery of the North East economy.“

This was posted in Bdaily's Members' News section by Federation of Small Businesses .