Issue - meetings

To consider the report of the Director of Resources on the development of an outline proposal for a Social Value Fund, which involves charging suppliers/tenderers an annual fee to contribute towards social and economic value in Leeds. The report seeks approval for the establishment of the Fund which could potentially generate more than £500,000 every year from as early as the financial year 2023/24.

The Director of Resources submitted a report, which further to the establishment of the Leeds Social Value Charter in 2016, presented the development of an outline proposal for a Social Value Fund, which involved charging suppliers/tenderers an annual fee to contribute towards social and economic value in Leeds, with the aim of the proposal being to provide a simple mechanism to generate a significant new income stream through which social value could be enhanced via procurement. 

In presenting the report the Executive Member provided an overview of the proposals for the scheme, gave details of the consultation undertaken to date and noted that it was expected that the proposal could potentially generate more than £500,000 every year.

Whilst being supportive of the principle of raising funds for the promotion of social value, concerns were raised regarding this proposal in terms of the focus it placed upon the private sector, the timing of the proposals and the impact it may potentially have upon other existing fund raising schemes. In response, the Board received further detail regarding the Council’s existing obligation to derive social value benefit from its procurement process, and how this scheme aimed to establish a simple and proportionate way of achieving that from the significant number of smaller contractors the Council had. In addition, further detail was provided on the positive response which had been received on the proposals to date.

RESOLVED – That the Social Value Fund proposal, as detailed within the submitted report, be approved for implementation by the Director of Resources.

(Under the provisions of Council Procedure Rule 16.5, Councillor A Carter and Councillor S Golton required it to be recorded that they both respectively voted against the decisions referred to within this Minute)