The collapse of Carillion is going to have wide-reaching implications for public sector contracts – which could be good news for smaller and medium sized businesses.

The Social Value Act was introduced in 2012 and required public authorities – including local government and health bodies – to have regard to economic, social and environmental well-being when they gave contracts for public sector works.  It was designed to help public sector commissioners get better value for money.  This is now the case for any public sector contracts with a total value above about £170,000.

The crash of Carillion earlier this year left many contracts on hold, cost many thousands of jobs, and shook confidence in large scale public contracts.  As a direct result, the Government are announcing changes to the Social Value Act which require businesses bidding for public sector contracts to positively demonstrate the ‘social value’ of their business.

Minister for the Cabinet Office, David Lidington, said “We want to see public services delivered with values at their heart, where the wider social benefits matter and are recognised. That means government doing more to create and nurture vibrant, healthy, innovative, competitive and diverse marketplaces of suppliers that include and encourage small businesses, mutuals, charities, co-operatives and social enterprises – and therefore harness the finest talent from across the public, private and voluntary sectors.”

In practice, this should mean businesses with a progressive approach to issues such as the gender pay gap, equality and discrimination should be in a stronger position to compete for valuable large contracts.

David Lidington said that the Government aims to “ensure that contracts are awarded on the basis of more than just value for money – but a company’s values too, so that their actions in society are rightly recognised and rewarded.”

Many of you will already know about Small Business Saturday, when the focus, just before Christmas each year, is on promoting small, local businesses.  Each year, they choose 100 small businesses as the centre of their campaign – you can apply now to be one of the SmallBiz100, and the benefits are huge!

About Small Biz Saturday

Small Business Saturday UK is a grassroots, non-commercial campaign, which highlights small business success and encourages consumers to ‘shop local’ and support small businesses in their communities.

The day itself takes place on the first Saturday in December each year, but the campaign aims to have a lasting impact on small businesses.  The date for your diary this year is Saturday, 1st December.

On Small Business Saturday, customers across the U.K go out and support all types of small businesses, online, in offices and in stores. Many small businesses take part in the day by hosting events and offering discounts.

SmallBiz100

This year Small Business Saturday is once again highlighting 100 small businesses, one a day for the 100 days leading up to Small Business Saturday 2018.

For the last five years, the 100 have not only received exposure on Small Business Saturday’s social media channels and in the local and national press, but also joined the Small Business Saturday team in London at receptions in both Downing Street and The Treasury Drum with the Chancellor of the Exchequer.

Applications close on June 30, 2018. Successful applicants will be notified by email in August.

Be part of it

Last year, Norfolk Deli in Hunstanton were one of the select 100.  It doesn’t cost anything to enter, and the potential benefits are large!  To put your business forward, just go here.  We’d love to have another local small business featured, do let us know if you’re entering, and especially if you’re one of the chosen few.