How to Achieve More ‘Social’ Value for Money Thursday 14 April 2016 #PELCPD
Get involved Housekeeping Welcome Fire exits – no planned fire drill Mobile phones Follow us: @PellingsLLP Tweet your questions using: #PELCPD
Cllr Jack Hopkins Peter Holbrook CBE Indra Pooran Nigel Goddard Speakers Cabinet Member for Jobs and Growth, London Borough of Lambeth @JackHopkins_Lab Chief Executive, Social Enterprise UK @peteholbrook Manager, Black Training and Enterprise Group (BTEG) @BTEG_LDN Director of Building Surveying, Pellings @PellingsLLP #PELCPD
Cllr Jack Hopkins Cabinet Member for Jobs and Growth London Borough of Lambeth #PELCPD
Peter Holbrook CBE Chief Executive Social Enterprise UK Chair Social Enterprise World Forum 2012-15
"There is one and only one social responsibility of business - to increase its profits.“ Milton Friedman
Trust in institutions to operate in society’s best interest TRUT
Profit Social Motivation
UK State of social enterprise 2015: 78,000 social enterprises >1 Million staff employed 39% based in deprived areas 53% grew compared to 28% of SME’s 57% predict growth next year 40% led by women, 14% by a BME leader 75% actively involve beneficiaries in governance £36 billion to the UK economy
Examples of joint working co-commissioning and social enterprise
Coin Street Community Buildrers
Philanthropy and investment Social care Corporate services Responsibility Housing Charities Education Health Consumer Leisure and choice culture
What can the public sector do support social value ?
History of the UK movement – UK government 1997 • Prime Minister Tony Blair commits to supporting social entrepreneurs in his first policy speech 2000 • UNLTD* launched to promote and develop social entrepreneurs with £100m endowment 2001 • Social Enterprise Unit formed as part of the Department for Trade and Industry 2002 • Social Enterprise Coalition (now Social Enterprise UK ) established 2005 • Community Interest Companies (CICs) - legislation to create a new form of corporate entity introduced • Social Enterprise Investment Fund - £100 million fund established for investment in new and existing 2009 social enterprises delivering health and social care services 2009 • Right to request introduced to support National Health Service staff establish social enterprises • All main parties manifesto’s have strong commitments to social enterprise – 2010 • Social Enterprise features in the Queen’s speech. • Government commits that 1 in 6 public sector employees will work for staff owned social enterprises 2011 and mutuals • Community Rights to Challenge, to Bid and to Build enshrined in the Localism Bill 2011 • First ever Social Impact Bond launched 2012 • Launch of Big Society Capital with £600m of investment for social enterprises and charities. • Passing of the Public Services (Social Value) Act 2012/3 • Prime Minister David Cameron launches the G8 Social Investment Taskforce
History of the UK movement – public policy 2013 • European Commission establishes Social Business Initiative across 3 DG’s - a top EC priority to 2022 2014 • EU procurement directives amended - thresholds increased, health, social care markets can in part be pro-social enterprise / mutual, social value principles reinforced. 2014 • Social Investment Tax Relief - 30% personal tax relief for investors in CICs and charities up to £5m 2014 • Social Value Act review by UK Government, Procurement Reform Act enacted in Scotland
History of the UK movement – public policy • Lord Young chairs review of the Social Value Act – central government guidance strengthened, a 2015 further review within 18 months • All main parties manifesto’s have strong commitments to social enterprise – • “the Conservatives will make it easier to set up and run a social enterprise” 2015 • “the Conservatives will enshrine a ‘right to mutualise” for public sector workers” • Housing associations • Dormant Assets Commission established 2016 • Channel 4 future explored … is social enterprise an option? • Is the social enterprise policy momentum beginning to fade?
Public Services (Social Value) Act 2012 Establishing ‘social value’ principles in public procurement UK = £100bn per year on Government procurement
“Today, successful businesses must play a catalytic role, not only managing our own economic, social and environmental impact; but creating value for all our myriad of stakeholders in collaboration with others...and responsible business and commercial success can be driven simultaneously” Paul Walsh, CEO Diageo “Any business that does not internalise social and environmental challenges is talking to itself and will, eventually, be rejected by its customers and its staff” Paul Polman, CEO Unilever Management is doing things right; leadership is doing the right things Peter F Drucker
“Coming together is a beginning; keeping together is progress; working together is success.” Henry Ford
The £1billion corporate challenge: £1,000,000,000 of procurement spend by 2020 through social businesses PwC Johnson & Johnson Interserve Wates Zurich RBS Santander
£1,000,000,000 of procurement spend by 2020 through social businesses
www.socialenterprise.org.uk peter.holbrook@socialenterprise.org.uk tweet @peteholbrook
Indra Pooran, Manager Black Training and Enterprise Group (BTEG) indra@bteg.co.uk www.bteg.co.uk #PELCPD
“Legacy Challenge” Nigel Goddard MRICS APMP MAPM MIoD Partner & Director of Building Surveying Pellings LLP #PELCPD
About Pellings – Who are we? ■ Integrated design, property and construction Accreditations consultancy that is passionate about making a difference ■ Multi-disciplinary practice of Architects and Planners, Project Managers, Building Surveyors, Cost Consultants, and Sustainability and Health & Safety advisors ■ Predominantly working in the Housing and Regeneration, Education sectors ■ Equally comfortable in the new build and remodelling/refurbishment arenas #PELCPD
Key facts 27% - proportion of government’s reported procurement spending that reached SME’s in 2014 -15 £4.9bn - government reported procurement spending directly with SME’s in 2014 – 2015 Number of SME’s working on government contracts Unknown Source: National Audit Office report 9 March 2016 #PELCPD
SME Definition (confused.com) ■5.4 million SME’s operating in the UK ■ EU commissions definition:- • employs fewer than 250 people • has annual turnover less than or equal to £39m • has a balance sheet of less than or equal to £33m Micro Business = less than 10 employees & turnover under £2 million Small Business = less than 50 employees & turnover under £10 million Medium Business = Less than 250 employees & turnover under £50 million So depending on which definition you use an SME could have anywhere between 50 and 500 employees and have a turnover between £6.5 million and £50 million. One thing that virtually everyone agrees with is that SMEs account for more than 99% of all UK business and that they employ over 12 million people. #PELCPD
‘Theseus’ Paradox’ Theseus' paradox, is a thought experiment that raises the question of whether an object which has had all of its components replaced remains fundamentally the same object #PELCPD
‘Triggers Broom’ A Personal Journey…………. #PELCPD
Project KPI’s or CSR commitments? Project KPI’s Program ESP Commitments Evaluated project by project All based on a per annum spend ■ Waste Disposal ■ Work placements 14-16 ■ Resident Satisfaction ■ Work placements 16 -19 ■ Time ■ Curriculum Support ■ Cost ■ Apprentices ■ Quality ■ Locally advertised employment ■Subcontractor NVQ’s ■ Sub contractor training plans & Support Where is the connection? What difference does this make at an estate level? #PELCPD
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