Latest updates and stories from Bedfordshire Chamber of Commerce and its Members

Social value is becoming an increasingly important part of winning work, particularly for businesses looking to secure public sector contracts or become part of major supply chains. But from the conversations we're having with our members and businesses across Bedfordshire, there is still some uncertainty around what social value actually means and what businesses need to do about it.

For many SMEs, it can sound like another procurement requirement to navigate, but the reality is that many businesses are already delivering social value every day. The challenge is recognising that contribution, recording it and being able to demonstrate the difference you're making when an opportunity arises.

Why social value matters

The Government is increasingly looking at how public procurement can deliver wider benefits for communities and the economy, alongside the goods and services being purchased. With around £385 billion spent through public procurement each year, there is significant buying power that can be used to support jobs, skills, local economies and wider social outcomes.

Under proposed procurement reforms, major procurements worth more than £5 million would need to include criteria relating to a supplier's contribution to jobs, opportunities or skills, with social value award criteria carrying a minimum 10% weighting.

For businesses looking to compete for this work, the direction is clear. Understanding what social value means, and being able to demonstrate the contribution your business makes, is likely to become an increasingly important part of the procurement process.

You may already be delivering social value

One of the biggest misconceptions we hear is that demonstrating social value means businesses need to start something completely new, when in many cases they are already doing much of what counts.

Employing local people, taking on apprentices, investing in training, buying from local suppliers, supporting charities and community organisations, volunteering or reducing your environmental impact can all contribute.

Put simply, social value is about the wider economic, social and environmental difference your business makes beyond delivering its core product or service. For many of our members, the challenge isn't necessarily doing more, but recognising what you are already doing and starting to measure it.

That could mean recording how many local people you employ, the training you provide, how much you spend with suppliers in the area or the hours your team gives to community projects. Much of this information may already be available through payroll and training records, supplier invoices, volunteering hours or environmental data, so getting started doesn't need to create a significant additional burden.

Why SMEs should be paying attention

Social value isn't only relevant if you're bidding directly for public sector contracts, as requirements can also travel through the supply chain.

If a major contractor has committed to creating local jobs, developing skills, supporting communities or reducing environmental impact, it will increasingly look to its suppliers to help deliver those outcomes. For SMEs, being able to demonstrate the wider contribution your business makes could therefore become an important point of difference when competing for work.

This is particularly relevant here in Bedfordshire, where significant investment is expected to create new opportunities across major projects and their wider supply chains. We want to make sure local businesses understand what buyers are looking for and are well placed to compete when those opportunities arise.

Helping our members prepare

This is one of the areas we're addressing through BedX, our programme designed to help Bedfordshire businesses prepare for opportunities generated by major investment across the county.

Through BedX, we're helping companies understand what procurement teams and larger contractors expect from their suppliers, identify any gaps and build the capability and evidence they need to compete.

For us, this isn't about making procurement more complicated. It's about helping you understand what matters, recognise where you are already strong and take practical steps that can put you in a better position when new opportunities emerge.

Start with what you're already doing

Our advice to businesses is to start by looking at the contribution you're already making through the way you operate, the people you employ and develop, where you spend your money, the communities you support and the steps you're taking to reduce your environmental impact.

From there, think about what you can measure and evidence. As procurement continues to evolve, having that information readily available could make a real difference when the next tender or supply chain opportunity comes along.

Here at the Chamber, we want Bedfordshire businesses to be ready to make the most of the investment coming into our county. For many, the foundations of a strong social value story are already there; the next step is recognising that contribution, recording it and making sure it counts.