Agenda item

Cabinet Portfolio:                 Leader of the Council

Strategic Directorate:           Chief Executive

Consideration was given to a report submitted by the Chief Executive which introduced the proposed Social Value Policy that was to be determined by the Cabinet at its meeting on 21 October 2019.

It was reported that the policy set out the ways in which the Council aimed to maximise the local impact of its spend through its commissioning and procurement processes and work with partners and suppliers. The key elements of the policy were to:

·         Raise the living standards of Rotherham residents and commit to working towards the Joseph Rowntree Living Wage

·         Increase the proportion of the council’s expenditure which goes to local businesses and providers rather than those elsewhere in the country.

·         Build social value into all council contracts (in excess of £100,000) and maximise the impact gained from every pound spent and introduce a rigorous system for assessing and measuring social value.

·         Commit to the principle of co-designing services wherever possible.

It was further reported that the Council planned to take steps to increase the amount of additional Social Value from its contracts and commissioned services by securing Social Value in every contract above a £100,000 threshold. It  would ensure that when the Council invited written quotations – where possible - at least one of the quotes would be from a Rotherham organisation and, where that was not possible, from Sheffield City Region. The Council also aimed to increase over time the proportion of its spend with local businesses and organisations and to open up opportunities for more co-designed services through its commissioning and procurement processes. The Social Value Framework set out the methodology for measuring Social Value through the procurement process. It was framed around six high level outcomes. These were:-

·         Raising living standards for residents

·         A strong local economy with employment and skills opportunities and a growing business base

·         Young people have the opportunity to develop skills and find worthwhile employment

·         Equality of opportunity for disadvantaged people and communities including disabled people

·         Strengthened and sustainable community and voluntary organisations

·         Greater environmental sustainability including accessible green public spaces.

Members noted that Social Value returns would be monitored and reported on an annual basis. The first year of the policy would be a baseline year with targets set subsequently to increase the amount of Social Value secured.

In reviewing the proposed policy, Members sought assurances as to how the Council would ensure that the policy would be adhered to where sub-contractors were involved. In response, it was explained that the CLES would analyse and review the supply chain and identify through the framework how much money would go through the local supply chain  

The Board welcomed the opportunity for young to develop skills and employment through the policy and framework. Following on, the Chief Executive confirmed that suppliers would need to demonstrate commitments to young people and the Council would need to see evidence against social value outcomes. To this end, suppliers would need to think creatively and provide assurance as to how they would bring forward proposals to deliver.

In response to a concern in respect of the likelihood of the framework being subject to abuse, it was confirmed that there was a self-declaration process against target outcomes, but there would be independent verification.

Members sought assurances that the costs for suppliers would not apply to smaller organisations and wanted more information on who would manage the portal. In response, the Chief Executive confirmed that the portal would detail all social value outcomes identified by suppliers and those would need to be updated on a quarterly basis. It was explained that the Council would learn from other organisations, but funds were available with existing budgets in the Assistant Chief Executive’s Office if required to assist with development.

Having considered the report and responses to questions, the Board was broadly supportive of the proposal to be considered by the Cabinet. Furthermore, it was felt that the wider body of Members would benefit from learning about the Social Value Policy and Framework and that a Member Seminar should be arranged by the Cabinet Member. Given the significance of the policy, Members felt it would be useful to get a report back on the progress made in implementing the policy after twelve months.

Resolved:-

1.    That Cabinet be advised that the recommendations be supported.

2.    That a Member Seminar be arranged in respect of the Social Value Policy.

3.    That a report be brought back to the Overview and Scrutiny Management Board after 12 months of the implementation of the policy to review its impact to date.