Social value on the up

As we approach next week’s Spring Budget and the prospect of reduced investment in the public sector, the collective commitment from contractors and local authorities to deliver social value through new infrastructure projects remains as important as ever. I’ve argued for some time now that short-term economic challenges around energy prices and materials availability shouldn’t distract from our long-term ambitions to create a built environment that delivers for communities right across the UK.

I was reassured then to read the findings of our latest insight report, Social Value In Construction 2023? Preview Report ?which has provided a snapshot of social delivery across the UK for the first six months of 2022. It was interesting to see how the industry continues to deliver on the social value agenda – making a positive impact on society at a time when it needs it the most.

520 construction contracts – ranging from ￡12,000 to ￡130m – with a combined total value of ￡3.6bn were analysed by our partners at Social Value Portal to establish the scale and scope of social value delivery across the UK.

In the first half of 2022, the construction industry delivered ￡1.09bn of social and local economic value, providing a 30.33% return on investment – an increase of 10% when compared to the same period in 2021.

In the context of the political and economic events of the last 12 months, these figures are all the more encouraging.

On a regional level, areas in the north and east of England outperformed the south, with the median social and local value added to projects measured at just over 25%, compared with 10% for projects in London. That’s not to say that the capital hasn’t delivered high social and local value. However, projects are not delivering as well in terms of the percentage of their total contract value.?

What is perhaps most interesting in our findings though is the apparent difference in social value delivery by contract size. Larger projects, with more time and resource to implement social value initiatives, go on to create more opportunities for its delivery. Whereas it appears to be increasingly difficult for smaller contracts to achieve the same proportion of investment in social value.

While it’s encouraging to see the tangible amount of social value delivery continue to rise, Government and local authorities need to be bolder in their social value requirements to encourage consultants and contractors to continually improve at all levels.

I am very much looking forward to taking our report and the debate surrounding social value to MIPIM next week to discuss how we can further achieve excellence in this field.

You can find me alongside my SCAPE colleagues Lillian McDowall , Pritesh Parmar Chris Clarke who will be speaking on the London at MIPIM stand alongside other key stakeholders from Belfast City Council , Greater London Authority and the British Property Federation .

If there is anyone in my network attending this year, do get in touch and it would be great to meet for a chat.