Small and medium-sized enterprises (SMEs) are the bedrock of the UK economy, comprising 99.9% of all businesses and employing millions of people across the nation. With over 5.6 million SMEs, these companies are key drivers of innovation, job creation, and local economic growth.
However, many face challenges that threaten their survival in a competitive landscape. Through their policies and initiatives, local authorities (LA’s) can play a pivotal role in empowering SMEs to not only survive but thrive.
This article explores practical ways local governments can support SMEs, addressing core challenges and offering actionable solutions that foster growth, innovation, and sustainability. Drawing on insights from Steph Gemson – a qualified tax advisor and founder of TaxGem, this article highlights key areas where councils can make a significant difference.
Steph Gemson
1. Streamlined Access to Funding and Resources
One of the most significant challenges facing SMEs is the lack of access to capital. According to recent data, 20% of UK SMEs fail within their first year, and 60% close within their first three years, often due to insufficient funding. Local authorities can help close this gap by improving access to government grants, low-interest loans, and other financial resources.
Steph Gemson, highlights that many SMEs are unaware of available funding options. “We regularly get asked about funding opportunities, and the fact that people are asking means the information isn’t readily available,” says Steph. “This indicates a need for better outreach and education. Local governments should maybe consider creating centralised portals and conduct workshops or webinars to inform SMEs about available funding, simplifying the application process.”
“During the COVID-19 pandemic, access to financial aid was streamlined in response to the crisis, proving that such improvements are possible without the need for a dire situation. Councils must build on this precedent to ensure that SMEs have the financial support they need to succeed from the start.”
2. Business-Friendly Policies and Regulations
Navigating the complex regulatory environment is a common complaint from SMEs, with 50% reporting that local council policies impede their growth. A major source of frustration is bureaucratic red tape, particularly around planning permissions and other business-related approvals.
For example, SMEs looking to expand or develop new premises often face prolonged delays and high costs due to complicated planning processes. As Steph mentions, “We’ve had plans knocked back multiple times, costing us both time and money. LA’s could potentially alleviate this by appointing experts within council teams to guide SMEs through planning applications and other regulatory processes, helping businesses navigate these hurdles more efficiently.”
“Streamlining policies and regulations, especially those related to business expansion, will create a more business-friendly environment. Councils can also consider “virtual hubs” or pop-up advice centres to provide direct access to guidance on navigating local regulations.”
3. Skills Development and Training Initiatives
Investing in skills development is critical for SME growth, but training costs can be prohibitive. The average apprenticeship costs businesses between £4,000 and £7,000, while training for existing staff can exceed £2,000 per employee. This financial burden often prevents SMEs from upskilling their workforce, particularly in critical areas like digital skills.
Steph Gemson notes, “We’ve struggled recently to find good applicants for our accountancy apprenticeship, even though it’s a solid career path. Connecting SMEs with potential apprentices earlier, perhaps through school workshops, could make a big difference.”
“LA’s can bridge this gap by offering subsidised training programmes and partnering with educational institutions to provide affordable training solutions. Encouraging collaboration between local businesses and schools or colleges can also help attract apprentices and improve the skillset of the local workforce.”
4. Improved Infrastructure and Digital Connectivity
Infrastructure plays a vital role in SME productivity, yet many businesses, particularly in rural areas, suffer from poor digital connectivity. Businesses with strong broadband and transport links are shown to be 35% more productive, but underserved areas often lack these essentials, stifling growth.
Councils should prioritise investments in high-speed internet and improved transportation links, particularly for rural or remote regions. As Steph points out, “Reliable internet is critical – without it, we can’t run our business. Offering subsidies for dongles or other stopgap solutions could help SMEs that struggle with connectivity issues.”
“Moreover, improving infrastructure around business hubs or parks can make these areas more attractive to new businesses, contributing to regional economic development.”
5. Networking and Mentorship Programmes
Mentorship and networking are critical to the long-term success of SMEs. Studies show that businesses with mentors are 70% more likely to survive beyond five years.
Steph recalls her own experience, saying, “One of the first things we did after moving into our building was to go door-to-door, introducing ourselves to other businesses. Networking is a low-cost, high-impact way to promote your business and build valuable connections. LA’s can support this by organising networking events or virtual mentorship programmes, where business owners can meet, share ideas, and learn from each other.”
6. Free Promotional Opportunities
Marketing can be a significant expense for SMEs, with businesses spending up to 10% of their revenue on advertising. Many smaller firms struggle to afford this, which limits their visibility and growth potential.
Steph suggests, “We’re not saying, local authorities should have a digital billboard at the end of the street advertising every local business. But let’s give people the opportunity to thrive. Local councils can help by creating free promotional opportunities, such as sponsoring community events or establishing online business directories that showcase local SMEs. Initiatives like “shop local” campaigns can also provide SMEs with valuable exposure without the heavy financial burden.”
“And let’s not forget networking is still a really great low cost way of enabling people to promote their own businesses, which takes some of the onus off LA’s. It’s down to the business owners to take advantage of these types of initiatives to promote their own businesses.”
7. Reducing Taxation
Finally, taxation remains a significant challenge for SMEs, particularly with flat tax rates that disproportionately affect smaller businesses. Local authorities can ease this burden by offering reduced business rates, tax holidays, or flexible payment terms. This would allow SMEs to reinvest in their growth rather than being hindered by excessive tax obligations.
As Steph explains, “The thing we often see as a stumbling block for businesses, is business rates on second premises. Generally speaking, entire business rates relief is applied if the rateable value of the premises is less than £15,00 per year. But if you take on a second premise, then the small business rates relief applicable to that second premises is only around £2,000 to £3,000.
It’s not feasible to suggest that a business should have a rateable value of less than £2,000 pounds per annum so as soon as you occupy a second site, you’re into the realms of business rates. This can be a huge expense and quite a hindrance to a small business and ultimately stunts growth. Reducing these taxes would allow SMEs to expand more freely.”
Empowering SMEs is essential to fostering long-term economic growth and creating vibrant communities. Local authorities must prioritize support for SMEs by streamlining funding access, simplifying regulations, investing in infrastructure, and promoting skills development. Networking and mentorship programs, alongside free promotional opportunities and reduced taxation, can provide the support SMEs need to thrive.
By taking proactive steps, councils can drive regional economic development, ensuring that SMEs continue to innovate, grow, and create jobs.
The Defence Infrastructure Organisation (DIO) and the Royal Navy have concluded a contract-signing and groundbreaking ceremony for a major construction project at Royal Naval Air Station (RNAS) Culdrose in Cornwall.
A proposed impression of the new Engineering Training School at RNAS Culdrose
This marks the beginning of work on a £99.5m project to replace and refurbish the 820 Naval Air Squadron (NAS) hangars, associated office buildings, and the full replacement of the Engineering Training School (ETS). The contract was awarded to Keir Construction with Mott MacDonald as the designated Technical Services Provider.
DIO and its contractors will deliver the project on behalf of the Royal Navy, with the first phase seeing the construction of a new air Engineering Training School, a new hangar and refurbishment of existing buildings for 820 Naval Air Squadron, the helicopter unit dedicated to protecting the Navy’s aircraft carrier strike groups. The project covers a combination of demolition, new build within the same site footprint, and the refurbishment of existing infrastructure.
Sustainability will be a key feature of the project which will include integrated water-saving measures, Net Zero carbon emissions, solar photovoltaic panels, energy efficient lighting, and air source heat pumps to improve energy efficiency and contribute to carbon reduction.
L to R: Andy Roberts of Mott MacDonald; Stu Johnson, Head of Navy Infrastructure; Cpt Stuart Irwin, Culdrose CO; Doug Lloyd of Keir Construction; and Dan Ross of DIO
RNAS Culdrose, a site crucial for Defence, is home to the Royal Navy’s anti-submarine warfare helicopter fleet. RNAS Culdrose also houses the Engineering Training School responsible for Air Engineering (AE) specialist training, delivering fully trained engineers to support Merlin helicopter operations.
Daniel Ross, DIO Programme Director, Major Programmes and Projects, said: “I am delighted that we can celebrate this significant milestone at RNAS Culdrose, marking the next phase of collaboration with our suppliers and the Royal Navy. Building on the sustainable designs already delivered, the project will continue to contribute towards Defence’s Net Zero targets and ultimately enhance our military capability.”
Captain Stuart Irwin, Commanding Officer, Royal Naval Air Station Culdrose said: “This project marks the start of an exciting regeneration and investment in RNAS Culdrose with new, modern facilities. The Engineering Training School is at the heart of our operations to maintain the Merlin helicopter fleet. Our young people, many of whom are just at the start of their naval careers, will learn how to maintain aircraft in a high-tech and modern teaching environment.
“The refurbishment of aircraft hangars and buildings at 820 Naval Air Squadron is another significant investment. It will provide us with more suitable and sustainable places to operate Merlin Helicopter Force now, and into the future.”
Stu Johnston, Deputy Head, Navy Infrastructure and Projects, Senior Responsible Officer, said: “The DIO and Navy infrastructure teams have worked closely to develop what will be hangar and training facilities fit for the 21st Century Royal Navy. The project will reflect our wider sustainability and energy efficiency ambitions. The team has embraced a collaborative and agile approach built on years of hard work by stakeholders.”
Doug Lloyd, Regional Director, Keir Construction, said: “We are delighted to have the opportunity to work with the Defence Infrastructure Organisation and the Royal Navy to deliver these new facilities. We have a wealth of experience in delivering buildings of the highest quality across the defence estate and are proud to be creating this important enabler to the UK’s future defence capability.”
Chris Ackerman, DIO Account Lead for Mott MacDonald, said: “We are really pleased to be working for DIO as their Technical Service Provider and alongside Kier, the Principal Contractor. This project will provide a suite of modern and sustainable infrastructure for the Royal Navy in accordance with the Defence Operational Energy Strategy”.
The project is scheduled for delivery in the spring of 2028.
Major reforms kicked off last week to match increasing threats, tackle waste and strengthen UK Defence.
Recruitment underway for new fully fledged National Armaments Director role.
New powers for Chief of the Defence Staff, and Military Strategic Headquarters to be launched within weeks.
The biggest reform of the Ministry of Defence in over 50 years to fix what the Public Accounts Committee calls the ‘broken’ defence procurement system and to strengthen UK Defence, has been launched by the Defence Secretary.
It comes amid increasing global threats, with growing Russian aggression and conflict in the Middle East. This requires increased resilience and warfighting readiness.
The Defence Secretary is leading the reforms to create a stronger defence centre which is able to secure better value for money, better outcomes for our Armed Forces, and better implement the Strategic Defence Review which will be published in the first half of next year.
Central to this is the creation of a new role: the fully fledgedNational Armaments Director. Its aim is to ensure the Armed Forces are properly equipped to defend Britain, to build up the British defence industry and to crack down on waste. The recruitment process for the role has begun, with a search for candidates now underway and which will continue over the coming weeks.
The new National Armaments Director will be responsible for:
Delivering the capabilities required from industry to execute the Defence plans and operations demanded by the new era.
Shaping and delivering the Defence industrial strategy which will be launched in the coming weeks.
Ensuring a resilient supply chain and the required readiness of the national ‘arsenal’.
Leading on UK defence exports and acquisition reform.
Harmonising procurement and working closely with wider government, industry, academia, and international partners to deploy best practice and investment.
The changes come as the Defence Secretary commits to ensuring “value for money across every penny of defence spend.”
Defence Secretary, John Healey
The reforms will also see the Chief of the Defence Staff overseeing a new Military Strategic Headquarters (MSHQ) where he will formally command the individual Service Chiefs for the first time. They will now be central to investment decisions between the Services, along with the Defence Secretary and Permanent Secretary.
This Government’s MOD reforms will ensure faster delivery and clearer accountability across Defence, to support the Government’s ‘One Defence’ drive. They will also ensure defence is ready to take forward recommendations of the Strategic Defence Review, with the new MSHQ fully functioning by the end of 2024 – ready to implement recommendations from the SDR in the first half of next year.
Defence Secretary John Healey MP said:
“Our government is delivering the change we promised: cracking down on waste and boosting Britain’s defence industry. We will forge “One Defence”, which is clear in its goals and consistent in its methods, to make Britain secure at home and strong abroad.
“The world is more dangerous, with growing Russian aggression, conflict in the Middle East and increasing global threats.
“These vital reforms will make UK military decision making faster, keep the country safer and achieve best value for taxpayers. This Government will strengthen UK Defence to respond to increasing threats.”
Defence Equipment & Support CEO and the UK’s current NAD, Andy Start, said:
“This fully fledged NAD role is a vitally important step towards transforming defence acquisition and the industrial base in the UK.
“This new role will have the levers needed to ensure our Armed Forces have the right kit and to deliver the defence industrial strategy we need for growth.
“We will work with industrial partners to embrace the One Defence approach so they can play their part in improvements that underpin national security and prosperity.”
The programme of reform will be informed by lessons from the department’s highly praised support to Ukraine. The National Audit Office recently highlighted the speed and scale of the MOD’s Operation Interflex training programme for Ukrainian recruits, as well as fast-tracked procurement and distribution of essential gifted equipment to the Ukrainian front line.
These reforms will radically simplify the MOD. Governance and processes will be streamlined, with innovation in technology and an improved approach to data underpinning everything the department does.
Roberts’ decades of experience will boost JAGGAER’s UK Public Sector strategy in Central and Local Government
Mark Roberts
JAGGAER, a global leader in enterprise procurement technology and supplier collaboration, is delighted to announce the appointment of Mark Roberts as its UK Public Sector Director. The appointment confirms JAGGAER’s long-term commitment to serving the UK public sector with award-winning insights and expertise to help it effectively leverage the potential of critical technological tools.
Roberts was previously Commercial Director for the Metropolitan Police Service in London, the largest Police Force in Europe, with income contracts of £300m and an expenditure budget of £850m. Prior to this, he was the Commercial Continuous Improvement Director for the Government Commercial Function. Through these roles, Mark has formed an extensive and up-to-date understanding of processes, challenges and objectives for public sector procurement in both central departments and the wider Public Sector.
Mark also has significant private sector procurement leadership experience, including roles at, Vodafone and Anheuser-Busch InBev, where he led the Global eSourcing programme, achieving impressive results that included including executing over 30,000 eAuctions per year. Leadership, design and implementation of new operating models in private and public sector organisations have led Mark to become a highly collaborative leader, ideally placed to help lead in times of transformation for the public sector.
Simon Thompson, VP Northern Europe at Jaggaer, is delighted to announce the new appointment: “In the UK, JAGGAER has a long history of serving the Public Sector and we’re thrilled to now have Mark on board as his experience will help us continue to tailor our support and investment in the sector to help it achieve greater efficiencies and efficacy.”
“The appointment is ideally timed as the public sector tries to successfully balance constrained budgets, delivery of key services public and the opportunities provided by the introduction of the new UK Procurement Bill in February 2025, opening up to more small businesses and social enterprises. couldn’t come at a better time as the Government grapples with unprecedented levels of public debt, while at the same time trying to enact an ambitious programme to reform and restore key elements of public service. If these conditions are confirmed in the autumn budget, ensuring value for money will become ever more key to channelling taxpayers’ funds on the delivery of front line services.”
“Joining an organization so firmly committed to enabling public services is a natural fit given my previous experience in the public sector. I look forward to leveraging my expertise in delivering value through the successful implementations of strategic sourcing, category management, contract management, supplier relationship management, social value and systems to benefit UK public institutions,” states Roberts.
UKspecialist solutions provider TripleComm has added Darkscope’s cyber threat intelligence solutions to its long-standing roster of network-focused solutions. Darkscope’s portfolio adds specific cybersecurity capabilities to TripleComm’s services for the first time.
Chris Plastiras, director at TripleComm, commented: “We’re very selective about the solutions we choose for our clients, so it’s a measure of how impressive Darkscope is that we’ve added its solutions to our portfolio so quickly. The detailed cyber threat intelligence that Darkscope provides means we will be able to help our customers apply defensive resources where they are most needed.”
Morten Mjels, VP Sales EMEA for Darkscope, said: “All organisations are subject to cyberattack, but no organisation has endless resources to try to prevent successful attacks – not that this is a very successful strategy in any case. Through our portfolio, TripleComm will be able to provide a more effective, more affordable solution that tells its customers where the next cyberattack on their network is likely to come from, so they can take steps to protect against the specific threats identified. TripleComm’s clients, especially those in the public sector, will benefit from this approach.”
Darkscope announced its formal channel program for Managed Security Service Providers (MSSPs) to distribute Darkscope’s unique, award-winning, AI-powered portfolio of cyber threat intelligence solutions in August. For full details of Darkscope’s MSSP program and its opportunities for the channel, visit Darkscope’s website.
Darkscope’s suite of solutions and services are built on its core ‘Watchtower’ platform. The portfolio:
provides real-time detection/monitoring of both direct threats and indirect (partner/supply) chain risks; and
helps cyber insurance providers understand the overall cyber security risk of an organisation
enables organisations to evaluate their ISO27001 and in some cases NIST readiness, and to comply with the imminent, stricter rules of NIS2
A combination of highly accurate AI models and algorithms assign scores to compromise indicators, so security teams can prioritise mitigation tasks. Specific combinations of functionality, solutions and services are configurable according to customer requirements.
Osprey Charging is the first UK Charge Point Operator (CPO) to feature innovative Dynamic Load Management (DLM) technology from Evolt Charging, the UK’s leading electric vehicle (EV) charging business, at its Stratford International hub, to maximise charging speeds without the need for additional energy capacity.
Originally opened in 2021 with six Raption 50kW chargers from Evolt Charging, Osprey launched its Stratford International EV charging hub in partnership with Transport for London (TfL). It was the first rapid charging hub in London.
To meet growing demand at the site, Evolt has now installed three of the more powerful and much faster Raption 100kW chargers to deliver ultra-rapid charging meaning users can attain a full charge between 16 and 36 minutes depending on the percentage of charge. It has also installed its innovative DLM system, which works with both the 50kW and 100kW chargers to smartly distribute the available power where it’s needed, using the original power supply.
The DLM system recognises unused capacity at one charger and distributes it to another, optimising the efficiency of energy distribution, reducing the risk of overloading and minimising the need for costly infrastructure upgrades.
Lewis Gardiner, Director of Operations at Osprey Charging, says adding Evolt’s DLM system to the Stratford International hub was key to its site expansion: “DLM is crucial for optimising power distribution and allowing us to install the optimum number and power rating of EV chargers at both new and existing sites, and part of our expansion plans. Over the past year, we have upgraded more than 50 sites across our network to meet increasing demand.
“Early feedback on the DLM system at Stratford has been positive,” Lewis continues, “with customers experiencing improved charging efficiency and reduced wait times. The intelligent distribution of power has enhanced the overall customer experience.”
“We know CPOs want to expand upon existing sites, and our DLM solution is the perfect solution to overcome the barriers of increased power capacity, time and costs,” says Anne Buckingham, Managing Director at Evolt Charging. “We are proud to be working in partnership with Osprey Charging to maximise charging speeds without the need for additional power at Stratford International.”
After the success of the first site, Osprey is exploring how other sites could benefit from DLM, allowing them to increase the number of chargers on its network and better serve EV drivers.
By Katie Fradley, Product Development Director at Flowlio
Katie Fradley
The first half of 2024 saw major changes to social housing rolled out, starting with the Regulator of Social Housing’s (RSH) new standards in February 2024, and the landmark Social Housing Regulation Act, which came into effect in April 2024.
These changes applied to all social landlords, including councils and housing associations, and requires them to ensure tenants’ safety in their homes, listen and respond promptly to tenants’ complaints, be accountable to tenants and treat them with fairness and respect, know more about the condition of every home and the needs of those living in them, and collect and use data effectively across a range of areas, including repairs.
In order to hold landlords to account, the RSH advised it would inspect larger landlords regularly, scrutinise data about tenant satisfaction, repairs and other relevant issues, continue to push landlords to protect tenants and address any problems, use a range of tools including new enforcement powers, and continue to focus on the financial viability and governance of housing associations as part of its integrated regulation. This inspection programme began in April and will run in four-year cycles, with action taken against landlords when required.
Combine these regulatory shifts with the Labour government’s ambition to create 1.5 million homes over the next few years, and it would be fair to say local councils and social housing stakeholders will be stretched to new limits.
So what can social landlords, councils and housing associations do to help ensure compliance with the updated regulations while helping to deliver the huge programme of house building? Deploying robust project management software is critical.
How digital project management governance can help ensure compliance with the new consumer standards
Research has shown that 83.8% of projects are not delivered on time or to budget, which at best, results in wasted resources and public funds, and at worst, could now mean non-compliance to the new standards and the repercussions this could bring.
Visibility and document control
Digital project management tools, such as Flowlio, can increase visibility across compliance-focused projects, as relevant data is stored in one place. This allows projects to be easily and efficiently audited, ensuring no aspect of the new consumer standards is overlooked.
Real-time reporting
Automated reporting features can track progress against requirements, enabling timely identification of risks or delays that could lead to non-compliance, and affording the opportunity to correct or address these potential barriers to compliance before they become a problem.
Digitised approval processes
By havingset approval processes within a project management tool, an extra layer of governance is added, ensuring the right people have oversight, are checking key documentation and therefore, reducing or preventing errors entirely.
Accountability
Clear assignment of tasks within digital tools ensures that individual responsibilities are well-defined and traceable, with a detailed audit trail, which is crucial for demonstrating compliance.
Risk management tools
Risk management within project management software can help to identify and mitigate risks related to non-compliance in several ways. This includes the ability to record and track potential risks in one place. For example, if there’s a risk of missing a compliance deadline or failing to meet a regulation, the risk can be documented centrally within the software. This centralisation makes it easier to monitor these risks throughout the project lifecycle and ensures that no potential compliance issues are overlooked.
Furthermore, the use of approval workflows within software can provide additional governance and assurance that compliance activities have been completed. For instance, before a project phase is marked as complete, the necessary approver will be notified to review the work and make specific compliance checks before signing off. This additionally provides an audit trail, creating a clear record of what was done to meet compliance requirements and consequently making it easier to prove compliance to regulators.
The importance of digitalisation to streamline project management processes
As well as the heightened level of compliance facing the social housing sector, the new house building targets are placing unprecedented burdens on operators. As such, driving efficiencies and implementing more streamlined processes has never been more vital, which is where digitalisation is key.
Integration of systems
Digital project management platforms can integrate with other enterprise systems, creating a flow of information that supports compliance efforts and drives efficiencies.
Data-driven decision making
By digitising project management, social housing providers have quick access to data analytics that enables them to make informed decisions, and prioritise projects that are critical to maintaining compliance with the new standards.
Scalability
Digital tools can easily scale to manage multiple projects simultaneously, ensuring that all areas of compliance are addressed across different sites and operations.
Standardising project management to remain compliant and viable
There are many single points of failure within projects which if not managed, can not only halt a project in its tracks, but could lead to non-compliance of the new regulations and standards.
Social housing providers need to deliver projects successfully to remain well-governed, viable and compliant. A well-delivered project will produce measurable benefits that ultimately improve the customer experience, whilst keeping them safe in their homes.
Flowlio brings a new organisational-wide approach to project delivery. Our platform connects projects, teams and people with technology and knowledge, enabling end-to-end collaborative change to be delivered.
Our framework and software introduce standardised working practices across the board and the governance needed to provide oversight and assurance that projects are prioritised properly and are being delivered effectively. Flowlio ensures alignment with strategic objectives, minimises risk and helps to ensure that the best possible outcomes are delivered.
As an enterprise solution designed for all people involved in delivering change, Flowlio speeds things up through automation and workflows. System-driven alerts embed ownership and accountability, providing early sight of when things may be going wrong and identifying where support might be needed to put things right before it’s too late.
The sector needs a new delivery approach which gives assurance, introduces efficiencies and increases the chances of project success, minimising the risk of waste, and project failure. It needs an approach that supports people to focus on delivering organisational and customer-led benefits, while adhering to the new evolution of the social housing industry.
As the Head of Corporate Social Responsibility at Matrix, I’ve had the opportunity to witness the increasing importance of social value within the procurement process. Social value is no longer an optional consideration; it is now a significant factor in public sector procurement. The evolution of social value from what it was a decade ago to where it stands today reflects its growing significance in delivering benefits beyond financial outcomes. For suppliers tendering for UK public sector contracts, understanding and embracing social value is key.
One thing I always emphasise when speaking to colleagues across various functions is the importance of understanding the relevance of social value, even in areas where it might not traditionally be considered. Public sector organisations are increasingly posing questions to suppliers about how they will deliver social value. When those bids come in, social value is evaluated with growing emphasis, and I believe that getting feedback and insights from across your organisation can help you respond effectively.
Siobhan Goss
With the future changes planned by the new Procurement Act scheduled for early next year, we are likely to see a greater focus on social value in procurement. The flexibility and innovation that the new legislation will provide will allow us to explore new ways of delivering and evaluating social value outcomes. I’m particularly interested to see how this will develop once the act comes into full force. For suppliers, this presents an opportunity to be creative and demonstrate how their offerings can go beyond just goods and services, creating a broader impact on society.
One of the challenges that the public sector might face is ensuring that they strike the right balance between what they ask of suppliers and what is realistically achievable. There is an emphasis on pushing suppliers to deliver genuine, measurable social value outcomes. But at the same time, we need to ensure that these outcomes are tangible and tailored to the needs of the communities we serve. It’s not just about ticking boxes – it’s about delivering value where it is needed most.
I think it’s important for suppliers to understand that, while the public sector may outline certain expectations, the real beneficiaries of social value initiatives are the communities themselves. In my view, engaging directly with these communities is crucial. It’s all too easy for procurement professionals to assume they know what’s best, but often, the best insights come from the people on the ground – local schools, charities, and community organisations that are already doing fantastic work. Engaging with these groups will not only make your social value efforts more impactful but also more relevant.
The open procurement approach that we will have under the new Act will allow for more innovation and flexibility. This is where suppliers can differentiate themselves. For instance, we are already seeing higher weightings placed on social value in procurement evaluations. Previously, the weightings for social value might have been a mere 2%, but with the new framework, we are hoping to see weightings of 5%, 10%, and even 15%. This higher emphasis reflects a shift in mindset, where social value is seen as an integral part of the procurement decision, not an afterthought.
Of course, there is no golden rule when it comes to social value weightings. The key is to find the right balance that works for both the procuring body and the suppliers. While 2% might not have made much difference, weightings in the 10-15% range start to feel more meaningful. However, these weightings must be aligned with clear goals and not applied arbitrarily. The social value element should be relevant to the contract and specific to the needs of the community. This tailored approach ensures that the social value offered is appropriate to the size of the contract and that it aligns with the goals of the public sector body.
My advice to suppliers is simple: don’t be insular. Social value isn’t something you should develop in isolation. Engaging with the wider community and understanding their needs is key to delivering meaningful outcomes. When planning your bid, think about how you can involve local stakeholders, such as schools and charities. Have you consulted them about what they need? These conversations don’t need to be time-consuming, but they can make a huge difference. Even small initiatives, like offering career talks at local schools, can have a significant impact. It’s about proportionality and finding the right balance between big-ticket items like apprenticeships and smaller but equally impactful initiatives.
When it comes to social value, collaboration is crucial. Many organisations in the public sector have their own social value champions—people who are focused on delivering regional or community benefits. For those that don’t, there is a wealth of knowledge and best practices to be shared. One of the strengths of the public sector is its willingness to collaborate and share ideas, and I encourage suppliers to tap into this. Speak with your peers, share ideas, and learn from one another. The more open we are to learning from others, the better we can deliver social value.
And finally, social value should not be seen as an additional burden or a box-ticking exercise. It represents an opportunity for suppliers to show how they can make a real difference to the communities they serve. By engaging with local stakeholders, tailoring your social value offerings, and collaborating with others in the sector, you can ensure that your bids not only meet but exceed expectations. Social value is here to stay, and I urge all suppliers to embrace it fully.
SHIMPAC® is excited to return to Highways UK in 2024, one of the leading events for the UK’s road and infrastructure sector.
Taking place at the National Exhibition Centre (NEC) in Birmingham, the event will bring together industry leaders, decision-makers, and experts to explore the latest innovations shaping the future of UK highways – and SHIMPAC® will be front and centre, showcasing its cutting-edge solutions.
At Highways UK 2024, SHIMPAC® will present its renowned SHIMPAC® ironwork seating and levelling system, detailing its unique combination of durability, speed, and sustainability whilst providing major cost savings to authorities and contractors alike.
Engineered to withstand the demands of modern traffic and the challenges of long-term infrastructure, SHIMPAC® provides local authorities and contractors with a roadwork solution that minimises disruption and ensures decades of reliable performance.
Key highlights that SHIMPAC® will showcase include:
Durability Under Pressure: Tested to withstand up to 120 tonnes of shear and compression forces, SHIMPAC® is designed to endure much more than the typical pressures experienced by highways, airports, and heavy traffic routes.
Long-Term Value: Built to last for decades, SHIMPAC® helps councils and local authorities cut down on maintenance costs, providing a long-term, cost-effective solution that extends the lifespan of road infrastructure.
Sustainability and Environmental Benefits: SHIMPAC®’s minimal maintenance requirements significantly reduce the environmental impact by lowering material consumption, energy use, and the carbon emissions associated with frequent road repairs.
Engaging with Industry Leaders and Innovators
Highways UK 2024 will provide a unique opportunity for SHIMPAC® to engage with industry professionals, from contractors and engineers to local authority representatives.
Highways UK is the premier event for showcasing the innovations shaping the future of the country’s road infrastructure.
Visitors to the SHIMPAC® stand will have the chance to discuss its proven track record of reliability and performance, with some installations still going strong after more than 35 years in the ground.
Attendees will also learn how SHIMPAC® can help meet current and future challenges in road infrastructure by delivering fast installation times, reducing road closures and traffic disruption, and supporting the drive towards greener, more sustainable roads.
SHIMPAC® is proud to be part of this conversation, bringing its decades of engineering expertise and focus on sustainability to the fore.
As the highways sector looks to improve the efficiency of the UK’s road network across a spectrum of areas, SHIMPAC® is positioned as a key player in driving these improvements forward.
Pay a Visit
SHIMPAC® invite all attendees to visit its stand at Highways UK 2024 to explore how its solutions can help build smarter, more durable, and sustainable roads.
Barry Andrews, SHIMPAC® Technical Director told us:
“Our team will be on hand to discuss the technical details of the SHIMPAC® system and demonstrate why it continues to be the go-to choice for projects involving the seating and/or levelling of ironwork across the country.
“Whether you’re looking for a solution to reduce road maintenance costs, keep your operatives safer, improve the longevity of your projects, or minimise your environmental impact, SHIMPAC® has the expertise and innovation to help you meet your goals.”
Brightly will be exhibiting at the upcoming Highways UK event, 16-17 October 2024 on stand 201, where it will demonstrate its intelligent asset management solutions.
At the event, Brightly will show how through its smart asset management solutions, local authorities and their contractors can manage multiple assets; get insight from the data; plan more effectively and intelligently for the future, and accurately measure their carbon footprint.
Being demoed on the stand is Brightly’s Confirm solution, which provides a cost-effective way for clients to use data to make informed decisions and increase value through proactive asset management. By centralising assets in one system, authorities will have a clear picture of their assets resulting in smarter decisions, more informed conversations, better planning and more budget transparency.
Hannah Winstanley
Also being shown at Highways UK will be Brightly’s Predictor solution that models long-term funding and service scenarios. Local authorities constantly face challenges with maximising financial resources. However, with Brightly’s Predictor software organisations can stop and think about where best to spend their money, therefore making informed decisions based on real-time data for budget forecasting and future investment.
As with every industry today, sustainability is becoming increasingly important as organisations are being challenged to set and deliver net-zero targets. With Brightly’s intelligent asset management solutions, users can identify ways to eliminate waste, reduce carbon emissions, understand energy consumption trends over time and prove the impact of ESG strategies.
At Highways UK, Brightly’s General Manager and Country Lead, Hannah Winstanley will be speaking about sustainability in her seminar, ‘CCAs in action!’. Hannah’s session will look at the importance of data-driven solutions in managing carbon footprint and emissions to achieve sustainable targets. Hannah will also discuss how Brightly works with its customers to measure their carbon footprint and how this data is helping them to become more aware of their carbon profile and costs, resulting in more strategic decisions.
Hannah comments, “We know that over 80% of local authorities in the UK have declared a climate emergency and 67% of councils are not confident that their local authority would achieve net zero targets within the timescales set. So, by helping organisations to determine their carbon footprint and having one central system to access this information is critical to meeting these targets.”
Visitors to Highways UK can catch Hannah’s seminar in the Sustainability Theatre on Wednesday 16th October at 15:15 and can visit the Brightly team on its stand 201 to discuss all its asset management solutions.
Calling for revised policy, greater collaboration, an end to ‘greenhushing’* and for a focus on positive outcomes
The Environmental Industries Commission today published its report from its flagship event about ‘The One Crisis’, a term coined from the United Nations (UN), that refers to the three main interlinked issues that humanity currently faces: climate change, pollution and biodiversity loss.
Industry leaders, environmental supply chain experts, and infrastructure and built environment professionals gathered on 17 September 2024 to join forces and lead the way in tackling the ‘triple planetary crisis as one’. To cover as many aspects as possible attendees looked at the One Crisis in general and deep dived into the circular economy and places for people themes. The report highlights observations from each of the sessions along with calls to action for the infrastructure industry and the Government.
The top four points for Industry include:
The three crises can be treated as one by bringing the best minds together to strive for positive outcomes beyond mitigation. Cross industry collaboration, breaking down siloes, is essential.
Better communications and sharing of best practice case studies backed by data-based evidence are crucial.
An end to ‘greenhushing’* to give clients and project teams a safe space to discuss solutions to the One Crisis is vital.
Better promotion of and support for sustainability/green jobs in the sector is needed now.
The top nine calls to action for Government include:
The Departments for Energy Security and Net Zero and Environment Farming and Rural Affairs must take a ‘One Crisis’ approach to climate and nature. Plans for nature and delivering net zero must be aligned. Government should ensure that planning and infrastructure decisions address nature, climate and health together, to ensure efficient delivery. Circular economy, chemical, air quality, water and soil strategies need to be proportionate and align with international best practice.
The ‘green thread’ of one crisis should be embedded throughout Government policy and industry’s approach to projects.
A review of the economics of climate change adaptation including nature-based solutions is needed.
Embed a value-based approach to procurement, going beyond economics to long term value to planet and people.
The Treasury should consider the growth opportunities of a circular economy when making policy.
An industry skills action plan for net zero and nature recovery from the Department for Business and Trade.
A refreshed infrastructure strategy alongside a long-term funding settlement.
A brownfield first approach.
Review National Policy Statements (NPS) with clear criteria for triggering reviews of other NPSs that may impact the One Crisis approach.
Kate Jennings, CEO of the Environmental Industries Commission and the Association for Consultancy and Engineering said: “It is abundantly clear that we need to propel action and collaborate across industry, and work in partnership with Government. True progress can only be realised through a holistic and integrated plan with nature at the centre. Our members are poised ready to develop and be part of the approach needed to address this crisis we face.”
Sustainable economic growth is urgently required to help deliver the funding for government to meet its commitments for national renewal.
However, despite an explicit focus on resetting the relationship between central and local government (and the importance of strong local government), serious questions remain about current approaches to stimulating growth.
The challenges facing local authorities, universities and others at the forefront of economic development, which themselves have suffered hugely in terms of their own funding, must be fully addressed to support this wider ambition.
Prior to the General Election we asked Institute of Economic Development (IED) members the question: what is your single biggest ask of the incoming government to support economic development going forward? Beyond making economic development statutory in local authorities, the overarching call in our Grow Local, Grow National manifesto, these are the most common general themes which emerged:
Long-term strategic planning, guided by a UK Industrial Strategy, to allow for well-planned interventions over multiple years.
Through greater certainty (linked to the above), and commitment to local economic development, encourage and enable planning and development of local plans.
Funding stability, removing competitive funding and allocating according to need, with greater investment/resource to support local economic development.
A review of planning legislation and housing growth plan, both of which are seen to be impacting on local approaches to placemaking.
Address public sector procurement reform, recognise the importance of robust business cases for development, and prioritise sustainability/the green economy.
As we mark Labour’s first 100 days in government, much has happened of course, and in fact things have moved forward at pace in many areas.
Just five days after the election, all regional Mayors in England came together to begin the process of shifting power out of Westminster through a major programme of devolution that will power up all corners of the country. Angela Rayner used the meeting to mark the beginning of the process of establishing Local Growth Plans across the country, and called on mayors to identify local specialisms, and contribute to work on a National Industrial Strategy. A week later the Deputy PM pledged to kickstart a new “devolution revolution” to transfer more powers out of Westminster and into the hands of local people.
The King’s Speech then presented a raft of bills which Ministers want to pass in the next parliamentary session. From a local government perspective, an English Devolution Bill will streamline the process to transfer more powers to elected mayors in combined council areas. A Planning and Infrastructure Bill will ease the process for approving critical infrastructure, and overhaul roles on the compulsory purchase of land. The Skills England Bill, meanwhile, has led to a new arms-length body of the same name to boost and regionalise training, bringing together businesses, unions and mayoral combined authorities.
We have since had further announcements of a new generation of new towns to kickstart economic growth and get Britain building again, an overhaul of the planning system to fix the foundations and grow the economy, and a commitment to delivering full devolution across the North. At the recent Labour party conference, both the PM and Deputy PM restated pledges to national renewal, sustained economic growth, modern industrial strategy, devolution, investment zones, and rebuilding public services.
So, all in all, that’s quite a lot in three months, but uncertainty persists about what is coming in the Budget on 30th October. Whilst the Chancellor’s ‘guarantee’ for multi-year funding settlements at the next spending review and an end to competitive funding bids is welcome, we really needed clarity on the future of the UK Shared Prosperity Fund past March 2025, the stronger towns fund, and separately for structural issues to be addressed in how funding is allocated to localities in order to achieve optimum impact.
We know, from consulting with IED members, that there is appetite to support greater priorities such as boosting green growth, widening social value, and promoting social enterprise. There is also an undercurrent around the importance of economic resilience and sustainability, and the significance of ‘good growth’. And, of course, addressing inclusive growth within organisational economic and place-based strategies.
With confirmation of the revamped Industrial Strategy Council, we will continue to push for the IED to be consulted as part of that council and/or an economic development taskforce.
The government has been urged to set out a clear vision for how it intends to build new roads, railways, prisons, schools and hospitals at a roundtable hosted by Browne Jacobson in partnership with the CBI.
Businesses from across a wide range of sectors discussed the various economic factors – including sustainable skills supply, long-term policy certainty and positive messaging about future outlook – that contribute to having sufficient confidence to invest in public infrastructure.
It came as UK and Ireland law firm Browne Jacobson called for the new government to identify a new public-private partnership model for financing such projects ahead of the Autumn Budget on 30 October.
Browne Jacobson partners Peter Ware (left) and Craig Elder (second right) with (L-R), the CBI’s Nikki Paterson, Rain Newton-Smith, and Mark Goldstone
Between 1992 and 2018, more than 700 schemes were completed under the private finance initiative (PFI). A company would fund upfront costs of a construction project and then recoup this capital, as well as operational costs, through long-term repayments from the procuring authority – typically an NHS trust, local authority or government department.
PFI received criticism due to a range of issues, including perceived poor value for the taxpayer and windfalls for investors that refinanced debt at lower rates following the riskier construction phase.
Craig Elder, Partner at Browne Jacobson who has worked on some of the UK’s highest-value PFI projects, said: “While there’s a negative perception around PFI, the fact is it was pivotal in successive Conservative and Labour governments building vital public infrastructure.
“In the absence of any replacement, we are now falling behind other major economies in delivering infrastructure, with the assets we do build being both the most expensive and delayed in the G7.
“Therefore, if the new government is serious about its mantra to ‘get Britain building again’, it must identify a new private finance model that learns from the mistakes of its predecessor to ensure the public purse receives better value and control while remaining attractive to the private sector.
“Alternative models are emerging and worthy of further exploration. In particular, the Future Governance Forum’s recent proposal for infrastructure investment partnerships takes lessons from the non-profit distributing model deployed in Scotland and mutual investment model in Wales to place a greater emphasis on community benefits in any project, cultivates a culture of long-term collaboration and gives local areas more control over their infrastructure.”
About 20 business leaders representing organisations including E.ON, Lloyds Banking Group, Aggregate Industries, Nottingham College and De Montfort University attended the roundtable at Browne Jacobson’s office in Colmore Row, Birmingham, on Tuesday 1 October.
Rain Newton-Smith, CEO at the CBI, chaired the meeting, in which delegates discussed Labour’s economic and employment policies, setting out what they’d like to see included in the Autumn Statement.
In a discussion on enablers and blockers to investment, the imperative of skills development and long-term commitments from government, such as regarding the energy transition, were highlighted as major issues in improving business confidence.
CBI CEO Rain Newton-Smith said: “We know that private investment in public sector infrastructure is key to driving growth regionally and across the UK. It was great to host a roundtable with Browne Jacobson with over 20 business leaders to discuss business priorities ahead of the Autumn Budget. This is a crucial moment in our growth journey – and we must take this opportunity to use the available levers to boost investment.”
Fusion21 is pleased to announce the suppliers successfully appointed to its national Materials Supply and Associated Services Framework worth up to £250 million over four years.
A total of 17 specialist firms have secured a place on the framework designed to supply construction materials to housing providers, and the wider public sector, managing the delivery of repairs and maintenance works.
Providing regional and national coverage, the streamlined framework offers innovation in service delivery solutions and technology – including energy efficient and net zero products and provides access to all goods required throughout the property life cycle.
Split into a total of 6 lots, the structure is:
Lot 1 General Building Materials, Lot 2 Electrical, Lot 3 Plumbing and Heating, Lot 4 Managed Services, Lot 5 Kitchens, Lot 6 Adapted and Accessible Living.
Peter Francis, Group Executive Director (Operations) at Fusion21 said: “Our members are under increasing pressure to deliver efficient repairs and maintenance works while ensuring overall value for money, so we’re delighted the renewal will help to manage built assets effectively whilst achieving greater operational efficiencies and improving first-time fix performance.
“Thanks to member and supplier feedback, we’re also pleased to offer a new Adapted and Accessible Living lot which includes adapted kitchens. This means members can call-off their adapted bathroom and adapted kitchen requirements from the same supplier.
“Other benefits of using the framework include working with a team of technical procurement experts and a rigorously assessed and approved supply chain, in addition to accessing a compliant and efficient route to market with flexible call-off options, a variety of cost models, and the option to accommodate multi-year contracts.
“The Materials Supply and Associated Services Framework will also support members to deliver social value they can see in communities, aligned with their organisational priorities.”
Successful suppliers appointed to Fusion21’s national Materials Supply and Associated Services Framework:
AKW Medi-care Limited, Bradfords Building Supplies Limited, City Electrical Factors Limited, City Plumbing Supplies Holdings Limited, Dennis & Robinson Limited t/a Paula Rosa Manhattan, Edmundson Electrical Limited, Huws Gray Limited, Magnet Limited, Moores Furniture Group Limited, PHC Parts, PROCare Shower & Bathroom Centre Limited, Rexel UK Limited, Stark Building Materials UK Limited t/a Jewson, Travis Perkins Trading Company Limited, UK Plumbing Supplies Limited, Wolseley UK Limited, YESSS Electrical.
SALTEX is excited to announce that members of the GMA’s NextGen group will be joining this year’s exhibition at the NEC Birmingham on 30-31 October 2024, offering fresh perspectives and a passion for the future of grounds management.
GMA NextGen, is a dynamic group of committed young professionals serving as ambassadors for the industry. Their mission is to inspire and recruit the next generation of grounds staff by showcasing the wide range of rewarding career opportunities within the sector.
From school leavers to early-career professionals, GMA NextGen is dedicated to promoting awareness and enthusiasm for an industry that plays a crucial role in sports and public spaces whilst ensuring the industry remains vibrant and well-equipped for the future. And what’s more, they’re currently recruiting for three more members!
Visitors can connect with GMA NextGen at the GMA Hub, stand C190 across both days of the exhibition. They’ll be on hand to offer practical advice to those interested in taking their first steps or looking to progress in the industry.
GMA’s NextGen members Meg Lay (Groundsperson at Lord’s Cricket Ground) and Jack Langley (Deputy Head Groundsperson at Ashton Gate Stadium) will also be taking part in a SALTEX Learning Live session ‘How to attract young people into the industry’ which will discuss the diverse opportunities the grounds sector offers young people – and how to encourage them to get started on a rewarding career.
Meg Lay of GMA NextGen and Lord’s Cricket Ground said: “I am hugely passionate about promoting our industry to a younger generation and I am very much looking forward to speaking on the topic at SALTEX. The exhibition is a fantastic opportunity to connect with likeminded people and discuss how we can improve the sector.”
Following this, attendees are invited to attend The Clubhouse, stand K010, to meet with the GMA NextGen team to carry on the discussion and explore further opportunities within the industry.
Jack Langley, Deputy Head Groundsperson at Ashton Gate Stadium said:“I am very excited to be representing GMA NextGen at SALTEX 2024. This event brings together the grounds industry like no other. A space for people to meet and discuss great ideas that can drive forward & make positive changes to the industry, that the future generation of grounds people can be proud of.”
For more information about SALTEX, and to register for your FREE ticket, visit www.saltex.org.uk.
Key positions taken by the Chartered Institute of Environmental Health (CIEH) on housing enforcement and licensing have been backed in a new report from the Renters’ Reform Coalition.
The coalition, which comprises 21 organisations and includes major housing and homelessness charities as well as CIEH, is an important voice in debates on reform of the private rented sector and the Government’s Renters’ Rights Bill.
The coalition’s new report, entitled ‘Roadmap for Reform’, calls for proper funding of local authority housing enforcement and strengthening of selective licensing.
The report says central government should support councils through “better resourcing, funding for training of environmental health officers, making it easier for councils to introduce licensing and consolidation of legislation”.
The report also says the proposed private rented sector database “should support and complement selective licensing” and suggests steps the Government could take to make it easier for local authorities to use licensing schemes to improve housing standards.
These steps include enabling local authorities operating selective licensing schemes to use licence conditions to improve housing conditions, increasing the maximum duration of discretionary licensing schemes from five to ten years and removing the Secretary of State’s ability to veto selective licensing schemes covering more than 20% of the local authority area.
CIEH has long called for consolidation of the various housing standards embodied in legislation in order to provide clarity for landlords, tenants and local authorities.
Mark Elliott, President of the Chartered Institute of Environmental Health, said:
“We have been working hard to win support on these issues and are delighted to have obtained this backing for our positions from the Renters’ Reform Coalition.
The importance attached by the coalition to funding for local authority enforcement and strengthening licensing is very welcome indeed.
We are particularly pleased that our positions on funding for training of environmental health professionals, consolidation of the various housing standards and removal of unnecessary barriers to the use of licensing schemes are echoed in the report.
We look forward to continuing to work with the coalition during the passage of the Renters’ Rights Bill through parliament.”
By James Johns, Head of Corporate Affairs, UK, Workday
The new Labour government has set its sights on growth.
Prime Minister Keir Starmer and his Chancellor, Rachel Reeves, have repeatedly highlighted their ambitions to bolster the economy. Meanwhile, the word ‘growth’ featured a healthy 74 times in the King’s Speech laying out the government’s plans.
While the government will be exploring many levers for growth – from investment in sustainable industry to adjusting corporate regulation – one of the most important will be boosting public services. As the party’s manifesto argued, “Improving public services is essential to growing our economy across the country.”
However, the new government faces constraints when it comes to spending. Reeves has re-committed to fiscal rules governing the UK’s debt-to-GDP ratio and budget deficit, and has also highlighted the current shortfall in public finances as a limiting factor in her department’s decision making.
With these limitations in mind, making better use of existing resources will be crucial if the government is to achieve its ambitions for public service improvement. For that reason, new technologies that can transform efficiency, including AI, have a critical role to play.
Recognising AI’s potential
The UK government appears poised to seize the opportunity that AI presents. The announcement of the AI Action Plan, led by the entrepreneur and Chair of Advanced Research And Innovation Agency (ARIA), Matt Clifford, underlines the government’s appetite.
Clifford’s goal is to identify how AI can better drive economic growth and improve outcomes for people across the UK. It’s a significant brief given the broad range of benefits AI can offer. Workday’s recent report ‘The UK Productivity Gap: How AI can untap workplace potential’ found UK enterprises alone could untap £119bn worth of additional productive work through adoption of the technology. According to the International Monetary Fund, the UK as a whole could see a 1.5% boost to productivity annually thanks to AI.
Beyond the brief for the AI Action Plan, the new government is making further strides to improve digitisation in public services. An early machinery of government change has given the Department for Science, Innovation, and Technology an expanded size and scope, bringing experts from the Government Digital Service, the Central Digital and Data Office, and the Incubator for AI together with their civil service colleagues responsible for the digital economy. The goal of this newly-formed team is to unite efforts in the digital transformation of public services under one department.
Clearly, the ambition of the new government to embrace innovative technology and grasp the opportunities it presents is there. However, beyond the flagship announcements, what are the use cases and solutions policymakers should explore to turn these significant ambitions into reality?
Deploying AI in public services
Between 2022 and 2032 the market for AI tools is expected to grow from $40 billion to $1.3 trillion. Underpinning that explosive growth is a huge number of new software products. AI services and features are hitting the market constantly, and this pace shows no signs of slowing.
For the government, this presents a twofold challenge: first, identifying the right AI tools to use. Second, adopting them and deploying them effectively and safely while staying up to date with ongoing innovations. For an entity as amorphous as the UK public sector, this is easier said than done.
One of the biggest risks is that in evaluating the vast array of new AI tools and platforms, public sector leaders are unable to see the forest for the trees. That’s because it’s not necessarily ‘new’ tools that will offer the greatest AI benefits – in many cases it’s through the integration of AI into established platforms where the most immediate benefits can be realised.
While this isn’t cause for complacency – there are many legacy systems that will still require updating or replatforming across the UK’s public sector – the benefits of AI may be closer than first thought.
Take Workday for example. We’ve been investing in AI for nearly a decade, using it to help push the boundaries of human potential. It’s embedded into our applications and features, rather than bolted on at the end. That means for organisations using Workday, whether it’s identifying skill gaps at scale or eliminating repetitive administrative tasks, AI adoption can happen seamlessly.
Because Workday is cloud-native, there’s no need for lengthy builds, time-consuming testing, complex coding or the deployment of new software to get the most from new AI features. Instead, organisations can opt-in to new features as they become available – helping them stay up to date without constantly monitoring the market for new products.
Engaging a trusted solution provider also offers peace of mind when it comes to one of the big concerns around AI in the public sector: data security. At Workday, we’re committed to bolstering trust and transparency in AI, which is why we offer full details on our responsible AI approach publicly. We’re likewise proud to work closely with industry leaders and policy makers – informing frameworks such as the European Union’s AI Act and emerging guidance in the UK – to ensure responsible use of AI.
Grasping the AI opportunity
Growth, nurtured by the improvement of public services, is a tentpole ambition for the UK’s new government. While the fiscal challenges Labour faces to achieving it are significant, the recent strides being made in AI technology play to their favour.
As Parliament returns from recess and new ministers delve into their briefs across the public services, they must continue the momentum already laid down with the instigation of the AI Action Plan and other initiatives. By embracing new AI innovations from trusted providers, they’ll be well positioned to tap efficiency, nurture productivity and ultimately turn those growth ambitions into reality.
New research has revealed that the value of rental arrears owed to local authorities has increased by more than 70% in the last five years.
Public sector payments specialist, Access PaySuite, part of Access Group, has created the Rental Arrears Index by submitting Freedom of Information requests to local authorities.
The analysis shows that local authorities providing social housing are owed on average £3.1 million per authority in rental arrears. This has increased by 71% from an average of £1.8 million in 2019.
As well as the jump over the last five years, authorities have also seen a significant jump over the last year – with Access PaySuite’s analysis finding a 14% increase when compared to March 2023.
It’s not just local authorities facing the challenge of surging rental arrears in social housing. In March this year the Regulator of Social Housing (RSH) recorded an 8.4% rise in rent arrears reported by housing associations – hitting a record high of £800 million – the highest single year jump since before the COVID-19 pandemic.
Local authorities have seen a similar picture, with the number of tenants falling into rental arrears increase by 17% over the last five years. On average, 41% of social housing units are currently in rental arrears.
The research found that the value of rental arrears per tenant have increased from £492 in 2019 to £710 in 2024, an increase of 44%.
221 local authorities in the UK own social housing, with a total 1.56 million units of housing stock recorded by the Regulator of Social Housing in 2023.
Commenting on the findings, Alex Common, Divisional Director, Product and Engineering, Access PaySuite, said:
“Social housing budgets have been squeezed significantly over recent years. On top of this, the cost of living crisis has caused real difficulties for many people to meet their living costs, whether they rent their property from their local authority, a housing association or a private landlord.
“If we apply our representative sample across the 221 local authorities which own social housing, the total value of rental arrears across local government could be as high as £650 million.
“For local authorities and housing associations, this creates a challenging balancing act between affordability for tenants, while meeting costs for their own essential expenditure requirements. Alongside rental arrears, local authorities are also spending significant amounts of time chasing overdue council tax payments, all of which is adding to their operating costs.
“Finding a long-term solution to the challenge of rising arrears is a complex challenge. However, in the meantime, there are important steps that local authorities can put in place to support their tenants and make rent collections as simple as possible.
“At Access PaySuite, we understand that housing associations’ and local authorities’ priorities are to deliver high quality services and drive better public sector outcomes for all their customers, citizens and communities. This includes providing accessibility, financial inclusion and a great customer experience as well as choice and flexibility in ways to pay, which marry affordability with cost effective payment collection, whether that’s face to face, by phone or online.”
Fusion21 urges housing providers to take action NOW as Wave 3 funding applications open
Procurement experts Fusion21 have called on housing providers to take immediate action as the government opens applications for the Warm Homes: Social Housing Fund Wave 3.
Paul Towers
The fund – previously known as the Social Housing Decarbonisation Fund (SHDF) – aims to make millions of social homes more energy efficient by 2028.
Applications open on 30 September and will close at midday on 25 November 2024. Funding will be available from April 2025 to March 2028, and the total amount will be confirmed at the April 2025 Spending Review.
Fusion21’s experts have advised that this round of funding will likely see increased competition, making early preparation and procurement planning essential to ensure landlords fully benefit from this critical opportunity.
Paul Towers, Framework Manager (Construction and Decarbonisation) at Fusion21 said: “Wave 3 is a critical fund for social landlords and housing providers, to help more people live in homes that are warm, efficient and affordable to heat.
“The first two waves have not been without their challenges, and we strongly encourage providers to act now. Engaging early with suppliers and with a procurement partner is crucial – as we already know there is a shortage of qualified supply partners.
“Fusion21 is prepared to help organisations from the outset, simplifying the decarbonisation journey and helping our members improve the quality of their housing stock.
“The toolkit we’ve developed will help housing providers meet the Social Housing Fund Wave 3 requirements with confidence. Quality asset data, early procurement decisions, and full engagement with supply chains will be key to successful applications. We’re here to support providers every step of the way.”
To help housing providers navigate the complex requirements of Wave 3, Fusion21 has launched a seven-step toolkit that includes the following key actions:
Understand your targets, be clear about what you are setting out to achieve through the fund and make sure you have a backup list.
Select your retrofit delivery partner early, think about partnerships and turn-key approach – enlist experts to manage this process.
Engage comprehensively with tenants using a robust engagement strategy.
Integrate the fund with planned capital works programmes.
Start data analysis as early as possible – don’t rely on historic, out of date, or inaccurate property data. Identify the gaps and weaknesses in your data.
Use time wisely, cleanse your data, undertake sample EPCs, retrofit assessments and technical surveys at pre-submission stage.
Engage early with relevant bodies such as Planning, Building Control, Distribution Network Operators and understand what information you will need to provide e.g. asbestos surveys.
Wave 3 introduces two routes to accessing funding: the Challenge Fund and Strategic Partnerships.
The Challenge Fund is open to all landlords who meet minimum standards, meaning applications that meet the basic requirements will be awarded funding. The Strategic Partnerships route is available to larger providers with a proven track record, offering a more flexible approach to delivery at scale.
Additionally, smaller providers will have access to new incentives, including funding for low-carbon heating technologies.
Fusion21 has already procured more than £500 million of decarbonisation retrofit projects and is now supporting its members in preparing for the upcoming wave.
As housing providers face increasing pressure to meet net-zero targets and reduce fuel poverty, Fusion21’s national Decarbonisation Framework, worth £750 million, offers a streamlined approach. It provides access to a network of qualified suppliers, enabling housing providers to accelerate decarbonisation projects across the UK.
Report details 65-strong investor coalition’s progress tackling modern slavery in UK company supply chains
‘Find it, Fix it, Prevent it’ Modern Slavery coalition now backed by 65 investors with collective assets under management and advice of £15 trillion.
Launch of the CCLA benchmark on Modern Slavery spurs action across consumer goods, travel, retail, mining, technology and finance companies.
Construction companies redouble Modern Slavery efforts following a roundtable with the Cabinet Office and investors.
Dame Sara Thornton and Dr Martin Buttle of CCLA give evidence to the House of Lords review of the Modern Slavery Act and push for the UK to adopt mandatory human rights legislation.
CCLA Investment Management today publishes its annual Find it, Fix it, Prevent it report outlining progress made by investors to combat modern slavery in company supply chains.
Since its launch in 2019, the Find it, Fix it, Prevent it collaboration has become a unique and influential coalition of investors using their leverage to help companies find, fix, and prevent modern slavery in their supply chains. CCLA-led, it is now supported by investors with collective assets under management and advisory of £15 trillion[1] and has three complementary workstreams: corporate engagement, public policy and developing better modern slavery data.
Modern slavery is an umbrella term encompassing slavery, servitude, human trafficking, and forced or compulsory labour. Victims are controlled by debt bondage, threats, violence, deception and coercion.
In 2022 over 50 million people were estimated to exist in modern slavery, a number that has grown over recent years as Covid, conflict and climate change have disrupted labour markets. Ten million more people were experiencing modern slavery in 2021 than in 2016[2]. Find it, Fix it, Prevent it focuses on forced or compulsory labour, and in 2022, the International Labor Organization estimated that 28 million people were victims of forced labour[3].
Modern slavery is increasingly a financially material risk for investors, particularly with new regulations on business to address human rights risks. The European Corporate Sustainability Due Diligence Directive (CSDDD) for example, mandates legal expectations on what constitutes responsible conduct, and applies to businesses based in the European Union and many that trade in Europe. 63% of those trapped in forced labour are in the private sector[4] and the UK alone imports an estimated $18 billion worth of goods that represent a high modern slavery risk[5].
Progress of particular note made by Find it, Fix it, Prevent it over the past year includes:
Launch of the CCLA Modern Slavery Benchmark which assesses the modern slavery statements and other disclosures of the largest 100 UK companies and has resulted in consumer goods, travel, retail, mining, technology and finance businesses investing new resources into tackling modern slavery and human rights. A number of large publicly listed companies including National Grid, Reckitt, RELX, Rio Tinto and Tesco have also now acknowledged the benchmark in their 2023/24 modern slavery statements.
A roundtable held by the Cabinet Office, CCLA Investment Management, LGT Wealth Management and the Supply Chain Sustainability School and attended by 17 major UK-listed and private construction companies including Balfour Beatty. This spurred activity across Government, with the Cabinet Office looking to incorporate more about the Modern Slavery Act in sourcing and contract management. It also saw a potential collaboration with civil society and regulators to provide a modern slavery intelligence network discussed, which several large construction companies have indicated they are willing to support.
Active engagement with government, policy makers and regulators to promote a meaningful regulatory environment. CCLA gave evidence and engaged with public officials on the effectiveness of the Modern Slavery Act and pushed for a mandatory human rights due diligence legislation in the UK similar to the European CSDDD. Dame Sara Thornton and Dr Martin Buttle gave evidence to the House of Lords review of the Modern Slavery Act and argued for improvements to legislation on transparency in supply chains at the Home Affairs Committee on Human Trafficking.
Peter HUGH SMITH, CCLA Chief Executive, said: “CCLA are committed to being a catalyst for change across our industry, using our influence to convene the City around the crucial issues that are not getting the attention they deserve. Modern slavery is often a misunderstood and underestimated problem and one where investor engagement has the potential to drive tangible and lasting positive change. We remain committed to leading a constructive, multi stakeholder approach to tackling modern slavery head on, working with our peers in the investment industry alongside companies and government.
We re-iterate the 2019 Find it, Fix it, Prevent it call to action for UK companies to increase their efforts to identify human trafficking, forced labour, and modern slavery in their supply chains, review, assess and disclose the effectiveness of their attempts to address these issues and support the provision of remedy to victims of modern slavery within their supply chains.”
More detailed highlights from the three Find it, Fix it, Prevent it workstreams include:
Corporate engagement:
Construction is regarded as a high-risk for modern slavery as it relies on relatively low-wage labour, a high-proportion of migrant workers, long-labour supply chains and material sourcing from countries with low levels of labour market enforcement. It was chosen as the primary sector for engagement for phase 2 of the Find it, Fit It, Prevent it programme following engagement with hospitality firms in phase 1.
As a result of the corporate engagement workstream businesses have enhanced their due diligence processes, identifying modern slavery risks and putting in processes to reduce them, as well as beginning to provide remedy for workers.
Public policy:
As members of the Home Office Prevention and Enforcement Forum, CCLA have advocated the need to update statutory guidance on transparency in supply chains and are pleased that this work has now been commissioned. Dame Sara Thornton and Dr Martin Buttle gave evidence to the House of Lords review of the Modern Slavery Act on the need for the UK to adopt similar legislation to the European Parliament’s Corporate Sustainability Due Diligence Directive (CSDDD), which includes legal obligations on large companies in respect of the adverse impacts of their activities on human rights and environmental protection. This would provide consistency of standards for businesses and would reduce the risk of goods made with forced labour being dumped in the UK.
CCLA have also submitted written and oral evidence making this point to the Home Affairs Committee on Human Trafficking and the House of Lords review of the Modern Slavery Act.
In addition, CCLA has argued for financial institutions to be explicitly required to report on their investing and lending portfolios and met with the Investment Association in an effort to raise standards and performance.
CCLA has also continued to raise the issue of migrant workers potentially exposed to forced labour on UK farms, arranging a briefing for investors by the Seasonal Workers Scheme Taskforce and contributing to the government’s Independent Review into labour shortages in the Food Supply Chain. Having gathered a supportive coalition of 14 investors, CCLA wrote to, and met with, the Secretary of State for Environment, Food and Rural Affairs urging DEFRA to implement the recommendations and received a positive response.
Developing better modern slavery data:
A lack of readily available data is hindering the potential for investors to act on Modern Slavery. In 2023 CCLA launched its highly successful benchmark on the top 100 UK listed companies based on the Find it, Fix it, Prevent it framework, which is described above. In the foreword to the benchmark report, the former Prime Minister Theresa May stated: “This is a great example of investors taking the lead and using modern slavery statements as a catalyst for improvement and I welcome it”.
Dame Sara THORNTON, Consultant Modern Slavery for CCLA, commented: “The number of people trapped in modern slavery has grown over the past six years as Covid-19, conflict and climate change have disrupted labour markets and so it is vital that businesses do everything they can to prevent it in their own organisations and value chains. As investors, we can have influence not just over the companies in which we invest but across the wider system. However, in order to know where to start – we need information and data, which in the case of modern slavery, can be hard to come by.”
“I’m immensely proud of our work at CCLA in driving the investor response to this vital issue, and, in particular, in producing our first Modern Slavery Benchmark. The Benchmark has already enabled investors to have constructive engagement with companies and there is evidence that companies are taking more steps to identify, mitigate and prevent forced labour. It is this kind of responsible business conduct which will prevent vulnerable workers from egregious exploitation and abuse.”
Dr Martin BUTTLE, Better Work Lead at CCLA, said: “We are seeing more and more businesses up their game on eliminating modern slavery in their supply chains, spurred on by engaged investors. However, we have a long way to go before we can be confident that all the companies we invest in are taking robust action. Transparency on this issue would be monumental in driving change, but without clear legislation, there is a disincentive for companies to disclose. That is why this group’s policy engagement work is so important, and why we will continue to advocate for more robust human rights regulation in the UK.”
“Thankfully, recent regulatory developments globally are making this an increasingly material topic for investors and companies, so we hope and expect to see much greater focus on this issue going forward.”
Jake MOELLER, Associate Director, Responsible Investment at Square Mile Investment Research & Consulting, said “CCLA’s ‘Find it, Fix it, Prevent it’ initiative is to be highly commended. Modern slavery involves the exploitation of workers by corporations and intermediaries who abuse employment practices and vulnerable people to access cheap labour. It can appear in any supply chain without committed vigilance. Through CCLA’s initiative, signatories are provided with the education and expertise to identify and stop modern slavery within their supply chains. I have witnessed first-hand the impressive work CCLA undertakes with investee companies to eliminate the sourcing of seasonal staff from predatory recruiters, complex and unreliable visa applications, and hidden costs. While this issue is more widespread than many realise, collaboration among NGOs, charities, and investors shows potential for its eradication.
Increasingly, fund gatekeepers such as us at Square Mile Research, are determining that powerful advocacy initiatives from groups like CCLA are a key consideration in deciding which fund managers we seek to build relationships with.”
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