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Charity Commission, NCVO and Acevo should be consulted on social enterprise strategy, says Labour

Finance | Niki May Young | 24 Nov 2011

Amendments proposed by Labour to the Public Services (Social Value) Bill, which include a requirement for direct consultation with the Charity Commission, Acevo, NCVO and others, could provide greater safeguards for not-for-profit involvement in the public service contracting process.

Shadow minister for civil society, Gareth Thomas (pictured), put forward the amendments yesterday during the Committee stage of the Bill and advised that, if enacted, they would allow charities to compete on fairer terms with the private sector for government contracts.

“As the cuts bite, given the extra social benefit they offer local people, our communities should be able to expect their local charity or social enterprise to be able to compete for contracts and new business on fair terms with the private sector,” he said.

“Ministers are out of touch with just how difficult things are for charities, social enterprises and community groups.

“The changes we propose would result in a fairer contest between big corporate interests and the right of charities and social enterprises to serve our local communities,” he added.

There has been much criticism of government's approach to public service contracts, in particular the implementation of the Work Programme and NHS contracts. It recently came under fire for awarding one of the largest NHS delivery contracts to private bidder Assura Medical, rather than the existing Central Surrey Health, despite it being awarded the first ever Big Society Award.

The Charity Commission recently announced in its first 'registration bulletin' that the number of charities providing services had increased from 34 per cent on the full register to 59 per cent of newly registered charities. 

National social enterprise strategy

Thomas’s amendments call for a clear "national social enterprise strategy" document advising how the government plans to promote engagement in social enterprise in England.

It also calls for the Secretary of State to report annually on the operation of the government’s strategy for social enterprises and to consult with a number of named membership bodies in the process of constructing the report. These include the Charity Commission, NCVO, Acevo and other non-charitable organisations, such as the National Audit Office.

The Charity Commission welcomed the proposed amendment saying it was "always happy to provide expert advice to assist government consultations". Meanwhile Peter Kyle, deputy chief executive of Acevo, said his organisation was "keen to represent the needs of members and the sector to government, ideally in a way with rights enshrined in legislation", but that "the priority for now though is ensuring that third sector providers are able to compete and deliver to their full potential".

Chloe Stables, spokeswoman for NCVO, said it always welcomes opportunities to represent its members' interests and is "pleased to see the level of political consensus that has emerged around placing social value at the heart of commissioning and hope to see the Bill progress into law".

Next stage of the Bill

Thomas also calls for the amendment of the title, which outlines the basis of the Bill. Currently it reads:
"(A Bill to) Require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts; and for connected purposes."

He proposes its amendment to: "(A Bill to) require the Secretary of State and local authorities to publish strategies in connection with promoting social enterprise; to enable communities to participate in the formulation and implementation of those strategies; that public sector    
contracts include provisions relating to social outcomes and social value; and for connected purposes."

The Bill will go to its Report Stage in the House of Commons tomorrow where the amendments will be voted on and further amendments may be suggested.

Other members of the Bill Committee include minister for civil society Nick Hurd, former Communities Secretary Hazel Blears, and MP Chris White, who initiated the Bill.

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