Agenda item

Report from the Director of Policy, Strategy and Engagement.

Recommendations:

That Cabinet:

1.    Receive the annual report, noting the social value commitments along with outcomes delivered. 

2.    Approve that the key priorities for 2026/27 are:

a.    Continuing to ensure social value commitments made within the procurement process are delivered through contracts.

b.    Championing democratic business models through employee ownership and 21st century social clubs.

c.     Continuing to build on opportunities to support residents into employment and strengthen access to good-quality jobs across the borough.

d.    Enabling more socially productive use of land and property.

e.    Following the changes proposed nationally, exploring how to maximise local benefits from investment. 

3.    Agree to delegate authority to the Director Policy, Strategy and Engagement, in consultation with the Leader of the Council, to extend the Social Value Policy approved by Cabinet in March 2024 to March 2029.

Consideration was given to the report which provided the annual update on the progress against the Social Value Policy, including the amount of value committed and delivered through Council contracts. Since the last annual report in June 2025, good progress had been made to further strengthen delivery of the Social Value Policy. Social Value commitments now stood at £41.6m. Importantly, validated delivery of Social Value stood at £23.7m, having increased by 92% compared to the previous annual report. 

Resulting in tangible benefits for residents, 454 jobs had been secured for local people, and 1,169 apprenticeships weeks had been delivered since the Council introduced this Policy.

Progress was reported across the Council’s Community Wealth Building Programme, including the launch of England’s first local authority-funded employee ownership feasibility service, support for more than 35 businesses considering succession planning options, and the introduction of the UK’s first 21st Century Social Clubs programme to strengthen member-owned community institutions. Partnership working through the Rotherham Together Partnership had also expanded Social Value activity across anchor organisations, whilst business support programmes had continued to improve procurement readiness and local supply chain development.

Priorities were also set for the next 12 months with a particular focus on ensuring progress was made across all 5 themes of community wealth building that were embedded within the Council’s Social Value Policy. These included:

·       Strengthening contract management to ensure Social Value commitments were delivered

·       Championing employee ownership and social clubs

·       Supporting residents into good-quality employment

·       Promoting the socially productive use of land and property

·       Maximising local benefits arising from future investment opportunities and procurement reforms.

Delegated authority was also proposed to extend the current Social Value Policy to March 2029.

Councillor Steele presented the views of the Overview and Scrutiny Management Board and summarised discussion around the potential impact of legislative and taxation changes on employee ownership initiatives, levels of demand for support, measurement of Social Value outcomes, support available to businesses seeking Council contracts, representation of ethnic minority-led businesses within procurement activity, and the long-term impact of Social Value interventions. He reported that, in addition to supporting the recommendations outlined in the report, scrutiny had concluded the Programme was now sufficiently established for reporting to be considered on a biennial rather than annual basis and recommended that future reports be presented every 2 years.

Councillor Baker-Rogers described the Policy as a highly successful initiative and highlighted the scale of sustained progress achieved since its introduction. She welcomed the scrutiny undertaken by the Overview and Scrutiny Management Board and praised the work of officers in delivering measurable outcomes for local communities.

Councillor Alam OBE welcomed the positive report and emphasised the contribution Social Value activity was making to supporting excluded and marginalised groups, together with the wider delivery of the Council’s Social Value commitments.

Councillor Williams highlighted the innovative nature of the Employee Ownership Programme and the 21st Century Social Clubs initiative, describing both as important interventions to support the local economy and preserve valued community institutions. He referred to strong engagement from businesses at the launch of the Employee Ownership Advisory Service and welcomed continued investment in these areas.

Deputy Leader, Councillor Cusworth, commented that whilst Social Value could sometimes appear an abstract concept, the report clearly demonstrated the significant practical and financial benefits being delivered to residents and communities across the Borough. She observed that the scale of impact achieved was substantial and recognised the leadership, officer commitment and ongoing scrutiny that had contributed to the Programme’s success. She accepted the recommendation that future reports be referred to scrutiny on a biennial basis.

Resolved:

That Cabinet:

1.    Receive the annual report, noting the social value commitments along with outcomes delivered.

2.    Approve that the key priorities for 2026/27 are:

a.    Continuing to ensure Social Value commitments made within the procurement process are delivered through contracts.

b.    Championing democratic business models through employee ownership and 21st century social clubs.

c.     Continuing to build on opportunities to support residents into employment and strengthen access to good-quality jobs across the Borough.

d.    Enabling more socially productive use of land and property.

e.    Following the changes proposed nationally, exploring how to maximise local benefits from investment.

3.    Agree to delegate authority to the Director of Policy, Strategy and Engagement, in consultation with the Leader of the Council, to extend the Social Value Policy approved by Cabinet in March 2024 to March 2029.

4.    To note that the Overview and Scrutiny Management Board (OSMB) has agreed to scrutinise the Social Value Annual Report every 2 years.