Does social value need to be redefined in a local government funding crisis?
It’s well known that Local Authorities are struggling for funding at the moment, representing a shortfall of £6.2 billion over the next two years according to the Local Government Association.
More than half (51%) of senior council figures warn their councils are likely to go bust in the current parliament unless local government funding is reformed. At the same time, demand for public services is at an all-time high, and every penny counts.
Back to basics
Social value in construction is now well embedded in the industry since the introduction of the Social Value Act in 2012, but it does come at a cost. Is the construction industry best placed to support delivery of these outputs?
To a large extent the answer is yes. More than ever, main contractors need to work with Local Authorities to deliver social benefits when and where they are needed. Using local suppliers and training the local workforce has become a necessity to maintain a modern workforce capable of building and maintaining their projects.
But often the construction industry can be expected to solve many of the other demographic challenges in the local area. Not only jobs, skills and the local economy, but also wider ambitions such as reducing crime, rough sleeping and supporting vulnerable people. These are important but there is a limit on how far a project can contribute effectively to areas which require specialist support.
Would resource be better focussed on ‘back to basics’ employment and skills strategies, rather than spreading resources thinly across a wide range of diverse and sometimes conflicting requirements?
The industry has gone to great efforts to mitigate the skills gap and generate future talent but delivering ever broader commitments can present further challenges and inevitably adds to the bottom line. The complex systems of measuring social value require significant planning, delivery, measurement and demonstration. Resources could be best used to support a more meaningful employment and skills strategy or re-invested in more specialised localised provision. Or have our communities become too reliant on social value from construction to replace stretched public services?
