The Role of the Public Services (Social Value) Act 2012 in Assessing the Returns from the Use of Public Budgets

Abstract

            The financial cost of public spending is often used to evaluate how public services provided by English and Welsh public bodies, as well as their suppliers, can improve the economic, social, and environmental wellbeing of local communities. During procurement, these bodies and their suppliers tend to be more effective when focusing on innovative factors that influence sustainable solutions. This article explores the context of the Public Services (Social Value) Act 2012 across its key dimensions. It does not focus on the exercise of judicial power in the UK, as the Act does not impose a strict mandatory obligation on public bodies to comply. However, the Act offers significant advantages by establishing a flexible legal framework. For instance, public bodies have the option to voluntarily integrate social value assessments into their operations for activities not subject to compulsory procurement processes. Furthermore, the Act encourages collaboration with local communities to improve public service design and incorporates relevant principles from the Procurement Act 2023. This article concludes that although the legal requirements remain flexible, the Act serves as an excellent case study on granting public bodies the freedom to prioritize overall value over mere cost, allowing for spending decisions based on social value frameworks at the pre-procurement stage.