Andy Burnham pushes to overhaul UK 'social value' procurement rules
The Greater Manchester mayor argues current rules add cost and delay, but critics say his plan just swaps one set of political priorities for another.
Andy Burnham, the mayor of Greater Manchester, has proposed a radical simplification of the UK's public procurement framework, arguing that the current "social value" requirements have become a costly bureaucratic burden that slows delivery and favours large contractors.
The intervention reopens a debate that has simmered since the 2012 Public Services (Social Value) Act first required public bodies to consider economic, social and environmental wellbeing when awarding contracts. What began as a duty to "have regard" to wider benefits was hardened in 2020, when the then Conservative government mandated a formal scoring system for central government tenders, and tightened again in 2022.
How the framework expanded
The 1988 Local Government Act explicitly barred councils from considering "non-commercial considerations" in procurement. That changed with the 2010 Equality Act, which introduced a public sector equality duty. The 2012 Social Value Act went further, requiring authorities to consider how spending might improve wellbeing. By 2020, a minimum 10% weighting for social value became mandatory in central government tenders, with criteria spanning net zero, modern slavery, diversity and domestic violence prevention.
Industry groups have long warned that the paperwork demands specialist consultants and lengthy committee reviews. A 2023 National Audit Office report found that complex procurement processes added an average of seven months to major infrastructure projects.
Burnham's alternative
Burnham's proposal would replace the broad social value matrix with a narrower focus on job creation, skills training and wage levels. Bids would be assessed primarily on the number of apprenticeships created, whether staff are paid above the statutory minimum, and the provision of flexible working arrangements.
"We need procurement that delivers for communities, not box-ticking exercises that only the biggest firms can afford," Burnham said in a speech to the Local Government Association.
The mayor argues that a streamlined approach would open opportunities for small and medium-sized enterprises, which currently win a shrinking share of public contracts. Federation of Small Businesses data shows SMEs secured 26% of central government spend in 2022-23, down from 33% five years earlier.
Political reaction and next steps
Labour's national leadership has not endorsed the plan. Shadow ministers privately acknowledge the current system needs reform but worry that narrowing the criteria could weaken leverage on climate and equality goals. The Cabinet Office is expected to publish a procurement reform green paper later this year, which will test whether Burnham's approach gains traction.
For now, the existing regulations remain in force. Contracting authorities must still apply the full social value model, and suppliers continue to invest heavily in compliance teams. The Serco chief executive recently told investors that navigating public sector tender requirements has become a core competitive advantage for large outsourcers.
If adopted, Burnham's framework would mark the first significant reduction in procurement complexity since 2010. Whether it survives contact with Whitehall's legal advisers and the Treasury's value-for-money auditors will determine if the £400bn spending machine becomes any faster or fairer.
