Bill to ensure ‘good’ businesses are rewarded with public sector contracts passes second reading in the Lords

Peter Holbrook, Chris White MP and Lord Newby comment on the result.

Responding to the Public Services Bill’s Second Reading in the House of Lords today, Peter Holbrook, Chief Executive of Social Enterprise UK, said:

“The level of cross party support we witnessed today in the House of Lords signals the significance of this legislation and is a tribute to Chris White, who is moving this progressive Bill through parliament with great commitment and a desire to see real change in public sector commissioning practices.

"Politicians taking part in the debate clearly understood the advantages of having social enterprises delivering public sector contracts. This is heartening for our sector.

“When social enterprises tackle local social and environmental issues and reinvest their profits, the result is local economic growth and added social value. Money from the public purse could be working harder for our communities.”

Chris White MP, who tabled the Private Members’ Bill, said:

“I am delighted that the Bill has managed to pass its Second Reading in the House of Lords – in a debate that was marked by consensus and understanding on all sides. I hope that we can get this Bill through as quickly as possible and send out a strong signal from Westminster that we want to support social enterprises and the ideals they aspire to.”

The Public Services (Social Value) Bill, if made law, would encourage commissioners and procurement officers to seek out organisations that deliver social value. Peers have 14 days to table any amendments.  If no amendments are made, the third reading could be timetabled within 3 to 4 weeks.

Lord Newby said:

“This Bill can help change the culture of public procurement so that the social value of a contract is always taken into account. This is a much needed and long overdue measure and I look forward to the Bill soon becoming law.”

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