A paper just published by the Social Market Foundation think-tank, features Phillip Ullmann, Chief Energiser of Cordant Group, calling for a government overhaul of public service contracts which should be awarded on the basis of “social value” and not just financial cost. ‘Public sector contracts should no longer be given to the lowest bidder but awarded to “social business” companies that agree to share profits with staff and employ local workers …’ he says. And added: “Flawed public procurement deals that leave taxpayers bearing all the risk are the best way anyone has yet devised to persuade voters that the modern economy really is a rigged game. New rules are overdue … Public services should be delivered by accountable social business that employ locally, share profits, and cap pay and dividends.” The paper suggest that ‘several countries around the world are experimenting with new business structures and corporate governance models, some of which appear to be ahead of the UK … we must learn from those around us – not least across the Channel in France – and make sure we do not fall behind in developing world-class businesses to drive our economy.’ See Facilities Management Journal for a fuller brief and a link to the paper.
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