Today the government will launch a package of new measures
designed to promote a healthy and diverse marketplace of
companies bidding for government contracts.
In a speech at the Reform think tank in central London, the
Chancellor of the Duchy of Lancaster and Minister for the
Cabinet Office, , will reinforce the
government’s commitment to the private and voluntary sector
delivery of public services. He will say:
We are determined to build a society where people from
all parts of our country can access the best public
services, and for those services to run efficiently and
smoothly for them and their families. Whether that
service is delivered by public, private or voluntary
sectors, what matters is that it works for them and their
everyday needs, while providing value for money for the
taxpayer.
And whether it is operating our call centres; building
our railways; or delivering our school meals - the
private sector has a vital role to play in delivering
public services, something this government will never
cease to champion.
He will also say that we need to build a diverse, vibrant
marketplace of different suppliers - which take into
account wider social values, as well as cost. He will set
out new measures to encourage and make it easier for small
businesses, mutuals, charities, co-operatives and social
enterprises to take on government contracts. He is expected
to say:
We want to see public services delivered with values at
their heart, where the wider social benefits matter and
are recognised. That means government doing more to
create and nurture vibrant, healthy, innovative,
competitive and diverse marketplaces of suppliers that
include and encourage small businesses, mutuals,
charities, co-operatives and social enterprises - and
therefore harness the finest talent from across the
public, private and voluntary sectors.
That is why I can announce today that we will extend the
requirements of the Social Value Act in central
government to ensure all major procurements explicitly
evaluate social value where appropriate, rather than just
‘consider’ it.
By doing so, we will ensure that contracts are awarded on
the basis of more than just value for money - but a
company’s values too, so that their actions in society
are rightly recognised and rewarded.
The new measures will extend the requirements of the 2013
Social Value Act to level the playing field for mutuals,
co-operatives and social enterprises bidding to win
government contracts.
In a further change, the government will use its purchasing
power - some £200 billion is spent per year on private
companies providing public services - to challenge its
major suppliers to do better on equality and diversity. The
minister is expected to say:
If we are to build a fairer society, in which the public
has greater trust in businesses not just to make a
profit, but also to play a responsible role in society,
then we must use the power of the public sector to lead
the way.
We will now develop proposals for government’s biggest
suppliers to publish data and provide action plans for
how they plan to address key social issues and
disparities - such as ethnic minority representation,
gender pay, and what they are doing to tackle the scourge
of modern slavery.”
And he will make clear that the government cannot do this
alone, but needs the industry to step up to the challenge.
He is expected to say:
But government cannot do this alone - we need the
industry to come with us on this journey. We need them to
put right failings where they have occurred; demonstrate
their ability to respond to changing circumstances; and
show their capacity for innovation and creativity as
well.
That is because we believe in an economy that works for
everyone - what you might call a ‘responsible capitalism’
- where true fairness means everyone playing by the same
rules as each other, and where businesses recognise the
duties and obligations they have to wider society.
By doing so, we will go some way to restoring trust
between government, industry and the public - and build
public services that have the confidence of the people
they are there to serve
The Minister will also announce further measures, including
requiring key suppliers to develop ‘living wills’ which
will allow contingency plans to be rapidly put into place
if needed, increased transparency for major contracts by
publishing key performance indicators, improved training
for government procurers, and enhanced measures to protect
suppliers from cyber attacks.
Mark Fox, Chief Executive of the British Services
Association, said:
This is a robust and welcome challenge by the government
to all those involved in the delivery of public services
across the private, voluntary and public sectors.
The challenge to the industry is to improve management
practices, increase transparency and develop new
arguments for the private sector to deliver public
services - a challenge we embrace.
We welcome these proposals and look forward to working
with the government to create more diverse, vibrant
markets which can make the most of talent from across all
parts of the United Kingdom, and deliver quality public
services to the benefit of the taxpayer.
Andrew Haldenby, Director of Reform, said:
Public services depend on private sector delivery, from
the education of children with special educational needs
to the maintenance of the nuclear deterrent. Reform
polling has consistently found that around 60 per cent of
voters don’t mind who delivers a public service, whether
public sector, private or charitable, as long as there is
fair access to it.
Rachel Law, Chief Executive of Possabilities, a
Manchester-based social enterprise, said:
Winning a public sector contract such as day services or
respite care could make a massive difference to a company
like ours - enabling us to grow and boost our revenue so
we can continue to support many more vulnerable people in
the local community.
