The Scrutiny Review Panel - STAR procurement and social value met to formally adopt its procedure rules and agree the scope of its review into STAR procurement and social value. The panel also received a presentation on the context and overview of social value in Stockport, noting that the council is performing well in this area.

STAR Procurement and Social Value Review

The Scrutiny Review Panel formally adopted its procedure rules and agreed the scope for its review into STAR procurement and social value. The panel received a presentation on the context and overview of social value in Stockport, which highlighted that the council is achieving approximately 38% of its spend in terms of social value. The review will explore the impact of social value on the borough plan and council plan ambitions, and the role STAR procurement plays in this.

The Assistant Director of Finance presented an overview of social value, noting that new legislation regarding procurement would soon come into effect, shifting the emphasis from economic to social value. A training and development programme is underway to ensure all directorates, commissioners, and contract managers are up-to-date with the new legislation, which is now expected in February 2025. This legislation will apply to new contracts, not existing ones.

STAR procurement is working with directorates using an engagement toolkit to ensure social value requests benefit Stockport's residents. Contract bidders are encouraged to sign up for three Match My Project requests to understand community needs. This initiative is seen as key to exploiting social value opportunities, with suppliers increasingly recognising that their social value delivery can help them win contracts. Match My Project allows the council to align social value delivery with local needs, rather than relying solely on contractor suggestions.

The presentation also highlighted that organisations are increasingly employing social value leads, providing STAR procurement with a single point of contact. This has facilitated negotiations and fostered a willingness to explore new ideas. A pre-engagement protocol for contract negotiations, proportionate to project size, has been in place for several years, ensuring transparency and an audit trail for all bidders. This process helps businesses understand the meaning of social value for each specific project.

It was reported that Stockport Council is not only the highest performing local authority in securing social value within STAR procurement but also the best in the country. Since 2019, Stockport Council has secured approximately £58 million in social value, with about 85% of its spend retained within the borough in 2023/24. Social value is applied to Stockport contracts valued at £25,000 and above, though formal reporting is only required for contracts exceeding £50,000.

While £58 million in social value has been secured, the social value portal has recorded £31 million as delivered, with many contracts still ongoing. The panel noted that reduced workforces in local authorities nationally present an inherent weakness in contract management, with this often being a small part of an individual's role. This poses a risk to councils in ensuring that winning bidders deliver on their promised social value. Efforts are being made to strategically improve contract management and reporting systems. Although there are no penalty clauses for non-delivery of social value, STAR procurement is considering potential actions. The new legislation is expected to strengthen local authorities' contractual positions.

Organisations bidding for contracts are informed that their social value work can demonstrate positive actions, potentially aiding them in winning future bids with other local authorities. Teams across the council are reportedly seeking support from social value projects, with further details to be provided at the next meeting. The panel members expressed their thanks for the presentation and discussion, and the presentation was noted.

The panel also noted the Stockport Social Value Charter, which outlines the council's commitment to delivering a social value vision through collaboration between the council, businesses, third sector partners, and voluntary groups for the benefit of Stockport's citizens, businesses, and communities. The charter emphasizes developing an ethical and sustainable future based on inclusive growth and community wealth building.