H&F has built on its success to date in securing social value through contracts, we will enhance this policy to further deliver the council's priorities by changing "Social Value" to "Added Value".
This will comprise of three elements:
- Inclusive smart economy – including employment, training, London Living Wage, small and medium enterprises
- Happier kinder H&F – including health & wellbeing, co-production, modern slavery, equalities
- Climate and ecological emergency – including net carbon neutral, sustainability, and environment
Why social value is important to H&F
Local Authorities have faced unprecedented pressures on their finances over the last decade, which has impacted their ability to fully support some of their most vulnerable residents. To mitigate some of this impact, H&F pledged to become 'Ruthlessly Financially Efficient' (Appendix 1 - Ruthlessly Financially Efficient document (pdf)) whilst at the same time, safeguarding activity to support the most vulnerable. H&F's wider objectives focus on six core values: building shared prosperity; creating a compassionate and inclusive council; doing things with residents, not to them; taking pride in H&F; being ruthlessly financially efficient; rising to the challenge of the climate and ecological emergency.
For H&F, social value is part of the added value we seek when sourcing good, works or services as we recognise that the act provides a real opportunity to leverage our annual buying power to achieve meaningful outcomes for local people. These are detailed in our Sourcing Strategy: Agenda for Cabinet on Monday 6 February 2023 (item 10)
Added value theme - inclusive smart economy
Our value of 'building shared prosperity', seeks to drive economic growth in the borough, underpinned by a robust Industrial Strategy. Through social value H&F will be able to support local businesses, enhance skills in the borough and increase the number of good quality employment and apprenticeship opportunities available to local people. Working more collaboratively with its suppliers, H&F can reverse some of the negative economic impacts COVID has created and better support our communities. Social value can be achieved through collaboration and adoption of innovative approaches to service delivery.
Added value theme - kinder happier H&F
Our value of 'doing things with residents, not to them' encourages officers to involve residents at the decision-making process, as well as at policy evaluation and service delivery. H&F will seek to ask residents where additional value is needed, depending on the project. Commissioners will be able to use the Social Value mechanisms to maximise benefits of public spend. If additional value can be identified at the commissioning stage, more targeted outcomes can be achieved through the procurement process and through contract monitoring.
Added value theme - climate and ecological emergency
H&F has a bold target to achieve carbon net zero by 2030 (Climate and ecological emergency). This can only be achieved through enhanced collaboration and a shared commitment from stakeholders across the borough, including our supply chain. Through social value we have provided a mechanism for suppliers to engage with the council on this crucial target and to use mechanisms to effectively track outcomes related to carbon reduction.
How is social value implemented?
Added value is a key component of our Sourcing Strategy, with a mandatory requirement for contracts over £100,000 to incorporate added value with 20% through their evaluation scoring (for procurement strategies after 1 April 2023 and 10% prior).
The council's ambition is to involve local businesses, voluntary sector representatives and residents in the annual review of social value themes, outcomes and measures (TOMs).
Social Value Portal (SVP) have advised the appropriate refence to the Themes Outcome and Measures is to be "National TOMs (Themes, Outcomes, and Measures) System (National TOMs)".
Social value themes and outcomes
The H&F social value TOMs have been developed by working closely with commissioners, contract managers, councillors and the Social Value Portal team. The list of the National TOMs will be reviewed annually to ensure alignment with the needs of the borough. H&F will work with local businesses, residents and representatives of the voluntary sector, satisfying our commitment to co-production.
Suppliers are required to make contractual commitments and are assessed on both the quantity and quality of responses.
Social value is part of the contract management process
The social value delivery is monitored via the social value portal and will be part of the quarterly performance assessments. The standard contracts include the social value provisions and remedies for non-delivery. In case of non-delivery, the remedies will apply. Full terms and conditions are attached in the following section.
Feedback is collated at the end of projects at department and organisational levels and is reviewed annually to continuously improve internal processes.
Suppliers and partners are supported to contribute to delivering the social value approach. Policies and guidance are published on the website to help suppliers understand the organisation's expectations for social value.
The Social Value Strategy, the Suppliers Guidance and the list of H&F social value TOMs can be found on Doing business with H&F Council.
H&F approach to social value performance management
Social value is measured in both financial and non-financial terms using the National TOMs. Commitments made by suppliers are reported on and monitored during the delivery of contracts.
Evidence of social value delivery is provided by suppliers and reviewed to ensure benefits are realised.
H&F social value statement press release on LGA website
The Local Government Association press release about how we became the first council to publish a Social Value Statement.