Agenda item

Report from the Assistant Chief Executive.

Recommendations:

1.    That the annual report is received noting the increased social value commitments along with outcomes achieved.

2.    That Cabinet agree the following key priorities for 2023 include:

a.    Continue to embed the foundations of strong social value delivery through contract manager and supplier learning and development, tools and evaluation.

b.    Support new and existing businesses to enter into new markets, from which the Council buys goods and services through the work of Rotherham Investment and Development Office and meet the buyer events.

c.     Hold a Social Value celebration event for suppliers to showcase impact and inspire others.

d.    Formally launch Rotherham Social Value Anchor Networks to raise awareness and engagement of more partners.

The Chair welcomed the Leader of the Council and the Chief Executive to the meeting. The Leader introduced the report outlining that the social value policy was introduced approximately three years ago. It set out a number of objectives to get best use of external spend with suppliers, value for money and maximise the benefits for Rotherham community and businesses. The purpose of this was to keep Council spend in the local economy, generating jobs, increasing wages through the commitment to the ‘real living wage’ and trying to raise incomes of low-income households.

It was outlined that there were £13.5m of social value commitments being secured from eligible new Council contracts in the last three years. and more money was being spent within the local and sub-regional economies than before. It was also noted that the Council pressed its suppliers to pay the ‘real living wage’ as a condition of contract. It was noted that new wage rates would be introduced for directly employed staff of £10.19 per hour and this would come into effect from April 1, 2023.

RMBC had developed its own bespoke measurement framework comprising a range of measures, across five themes, and designed to have a positive impact on the economic, social and environmental wellbeing of the Rotherham community:

·       Jobs: Promote Local Skills and Employment.

·       Growth: Supporting Growth of Local and Small Business.

·       Social: Healthier, Safer and more Resilient Communities.

·       Environment: Protecting and Improving Our Environment.

·       Innovation: Promoting Social Innovation

The Chief Executive reflected on the commitments made last year and progress to date. The social value commissioning toolkit has been launched providing guidance and tools for those involved in preparing specifications for contracts to include social value from the beginning of planning through to letting the contract. Training has been undertaken with staff to ensure that social value is considered at an early stage in the process. Work is also underway with the wider Rotherham Together Partnership and the South Yorkshire Mayoral Combined Authority to disseminate the Social Value Charter. The importance of working with anchor networks was cited to make sure that partners are working together to make sure as much of the spend could go locally. Progress was being made with examples given of the benefits this initiative had brought including employment opportunities, training and qualifications. These were illustrated through case studies.

The Chair invited questions from Board and a discussion on the following points ensued:

·       Clarification was sought on how engagement with local businesses was undertaken. Details were provided of ‘meet the buyer’ events, how contracts were advertised, and how details of procurement processes were disseminated. Engagement had also taken place with the Chamber of Commerce and Rotherham Pioneers. Information was shared with partners to coordinate activity.

·       For larger contractors, it was felt that there was a good level of awareness about procurement web-based systems. To ensure that local contractors had opportunities to tender, there was a requirement for smaller contracts that one quote has to be provided locally. The Council used the Chamber of Commerce to advise on local supply chains and work is underway to build a library of local business. The Business Advisor Network was also utilised to draw on local intelligence about potential suppliers or contractors. The Council was committed to increasing local spend.

·       Details with sought how social value was measured in awarding contracts. Contract managers would assess bids to establish how it met the criteria of delivering skills and apprenticeships and demonstrate local benefits. The contract would be scored accordingly. The report detailed how this was undertaken.

·       Further information was requested how local start-ups were encouraged to apply for contracts. Details were given of local networks and the assistance RiDO gives. It was noted that RiDO have links with new businesses and gave advice about supply chains and opportunities.

Resolved:- That Cabinet be advised that the following recommendations be supported:

1)    That the annual report is received noting the increased social value commitments along with outcomes achieved.

2)    That Cabinet agree the following key priorities for 2023 include:

a.    Continue to embed the foundations of strong social value delivery through contract manager and supplier learning and development, tools and evaluation.

b.    Support new and existing businesses to enter into new markets, from which the Council buys goods and services through the work of Rotherham Investment and Development Office and meet the buyer events.

c.     Hold a Social Value celebration event for suppliers to showcase impact and inspire others.

d.    Formally launch Rotherham Social Value Anchor Networks to raise awareness and engagement of more partners.