The impossible deal

Every two years, our Social Enterprise Knowledge Centre publishes the State of Social Enterprise report. In 2025 we surveyed nearly 2,000 social enterprises, asking them questions about their finances, growth and impact. It provides the clearest picture of how businesses that are crucial to the health and wellbeing of UK communities are performing.   The State of Social Enterprise has influenced UK government policy and contributed to greater understanding of social enterprise internationally, but the rich data also offers a lot of value at a local level. It is for this reason that we’re publishing nine factsheets that provide further insight into the contribution of social enterprises in different regions.  Are more jobs being created by social enterprises in the North East? Are more vulnerable people being supported in the South West than any other area of the country? What do those in the West Midlands think of the finance they can access? All the answers are in these nine sheets.   As we’ve published previous editions of these, we know the regional factsheets help local authorities understand the contribution of social enterprises to their economy, provide our Places networks with quick facts to support their work, and act as a useful resource for local journalists reporting on businesses with a social or environmental purpose. They’re also useful for local funders.   We’re grateful to our partners Access – the Foundation for Social Investment, and Better Society Capital for supporting the Social Enterprise Knowledge Centre, and Fusion21 for supporting the State of Social Enterprise report.  North East North West Yorkshire and the Humber East Midlands West Midlands East of England London South East South West Photo: Celebrating the end of the Build Your Business programme at Impact Hub Yorkshire.

Social enterprises, local authority councillors, corporate supporters and legal experts recently met with MPs to discuss why existing procurement legislation is failing to deliver the social value it promises – and what needs to change. Why are local authorities not making greater use of the powers they already have to procure from voluntary, community and social enterprise (VCSE) organisations? That question framed the latest meeting of the All-Party Parliamentary Group on the Social, Cooperative and Community Economy, chaired by Patrick Hurley MP. Social enterprises, councillors, corporate partners and legal experts shared evidence with MPs on the barriers preventing procurement legislation from delivering greater social value through public supply chains. The backdrop for the discussion was the Procurement Act 2023 and the National Procurement Policy Statement, which together set clear expectations that public bodies should use procurement to deliver wider social, economic and environmental outcomes. The challenge under scrutiny was straightforward: if the legislative levers already exist, why are so few councils using them effectively? Is TOMS the wrong tool? A consistent theme was the over-reliance on the Themes, Outcomes and Measures (TOMS) framework as a proxy for social value. Mark Simms, Group Chief Executive of P3, argued that TOMS is poorly suited to people-centred services. He described procurement exercises where required metrics – such as apprenticeship numbers or job creation – bore little relation to the realities of service delivery. This, he argued, disadvantages honest providers while rewarding those willing to over-promise. Sandra Hamilton, Consultant at Stone King LLP, went further, suggesting that people-focused services require a fundamentally different procurement approach. With adult and children’s social care now accounting for an estimated 75% of local authority spending, she argued that a one-size-fits-all market procurement model is structurally unfit for purpose. Bristol City Council has already acted on this insight. Councillor Sibusiso Tshabalala confirmed that the authority has moved away from TOMS entirely, replacing it with contextual measures aligned to contract size and local priorities. Capacity, risk and the guidance gap Anne Epsom, Assistant Director at Surrey County Council, offered a candid local authority perspective. She acknowledged that under-resourced councils often default to TOMS because it is readily available and familiar. Her call was for clearer, centralised guidance: a shared methodology that would reduce the burden on individual officers trying to drive best practice through lengthy internal processes. She also highlighted the persistent gap between what the Procurement Act mandates for central government and what is binding on local authorities – a distinction that undermines consistency and ambition. Levelling the playing field Terry Murphy, CEO of Sheffield Social Enterprise Network, proposed a simple structural change. Rather than requiring social enterprises to repeatedly evidence their social value through lengthy tender responses, commissioners could ask a single, binary question: is the organisation legally required, through its governance, to deliver social or environmental benefit? Verification could be as straightforward as a Companies House check, with a positive answer attracting a score. If social value is embedded in an organisation’s legal structure, Murphy argued, it should not need to be restated in every procurement exercise. Amanda Johnston of Social Enterprise Northern Ireland highlighted another underused lever: government minimum thresholds. A small legislative amendment allowing direct awards to social enterprises below this level, without challenge, could significantly increase access to public contracts at the lower end of the market. Towards honest procurement A broader cultural shift also emerged as essential. Several speakers called for a move from transactional to relational procurement, particularly in complex, people-centred services. Mark Simms reflected on P3’s role in the Covid-era Everyone In programme, where services were mobilised rapidly on the basis of trust and shared risk to safeguard homeless people from infection, often before contracts were finalised. Transparent discussions about costs, risks and delivery constraints enabled faster and more effective responses. He described this as an example of “honest procurement” – focused on problem-solving rather than contractual compliance. Sue Racster from Amey echoed this approach, describing the company’s shift towards more intentional partnerships with VCSEs, shaped by listening to what social enterprises need in practice rather than imposing top-down solutions. Accountability and transparency Finally, Councillor Tshabalala raised the issue of accountability. He proposed the use of civic platforms rooted in neighbourhood forums, enabling communities themselves to verify whether promised social value has been delivered locally. Such approaches could build on existing place-based infrastructure and give residents visibility over commitments made in their name. He also highlighted a persistent imbalance: while councils routinely require suppliers and grant recipients to report on impact, they publish no equivalent account of the social value generated through their own procurement. A standardised framework for annual social value reporting by local authorities, aligned with budget decisions, could close this gap and strengthen public accountability. What happens next The APPG will continue to gather evidence throughout April, with a report expected in late spring or early summer. The aim is to clarify what local authorities can already do under existing legislation – and to identify where further changes to law, guidance or practice are needed to unlock the full potential of social value in public procurement.

Team England is delighted to announce a new partnership with GLL, the UK’s largest charitable leisure social enterprise, as preparations build toward the Glasgow 2026 Commonwealth Games. The partnership brings together two organisations with a shared mission: helping people across England get active, discover new sports and feel part of something bigger. Through its network of Better leisure centres, GLL supports millions of visits every year, and will now play a major role in connecting communities to Team England in the lead‑up to the Games. At the heart of the partnership is the Team England National Sports Weekend, taking place on 18th – 19th July 2026 across GLL venues nationwide. The weekend will open the doors to Commonwealth sports, offering free or low‑cost sessions, coaching and taster activities for local communities. Around 300,000 people are expected to take part, giving families, young people and new participants the chance to try something different, get closer to the spirit of this year’s Commonwealth Games, and meet some Team England legends. Speaking about the partnership, Mark Osikoya, CEO of Commonwealth Games England, said: “We’re thrilled to be partnering with GLL who are an organisation that share our belief in the power of sport to bring people together. With their incredible reach into communities across England, this partnership will help more people feel connected to Team England and inspired by the journey to Glasgow 2026.” Peter Bundey, CEO of GLL, added: “GLL is proud to support Team England and to help open up Commonwealth sports to people of all ages and abilities. The National Sports Weekend will be a fantastic celebration of movement, community and opportunity. We can’t wait to welcome thousands of people into our centres this summer.” GLL has a long track record of supporting both elite and community sports, from backing the London 2012 Games bid to operating Olympic venues in legacy mode.  In 2008 it launched the GLL Sport Foundation, to help talented young athletes facing financial hardship.  To date the Foundation has provided over 35,000 awards and almost £20million worth of support to aspiring sportsmen and women.  About GLL Established in 1993, GLL is the largest UK-based charitable social enterprise delivering leisure, health and community services. Operating under the Better brand, it manages over 250 public sport and leisure centres, 114 libraries and 10 children’s centres in partnership with over 70 government, public agency and sporting body partners. It has 750 leisure members and welcomes 59 million customer visits per year. gll.org