The Procurement Act 2023: Partnering for Social Value

On February 24th, the Procurement Act 2023 came into force, marking a significant shift in public sector procurement. This legislation introduces key changes aimed at streamlining processes, increasing transparency, and, crucially, placing greater emphasis on social value. The impact of this act will be felt across all sectors, influencing how organisations engage with public bodies and deliver essential services.

It places a distinct emphasis on partnerships as a cornerstone for delivering both social and economic value. These partnerships are not merely collaborative efforts, but strategic alliances designed to amplify the public benefits derived from procurement. An approach designed to deliver local and regional economic growth plans and strategic priorities.

These partnerships are seen as instrumental in supporting national missions, from stimulating economic growth and promoting clean energy to enhancing public services like the National Health Service. In addition, there is a focus on co-designing solutions with customers, frontline workers, and communities to maximise social and economic benefits, particularly in areas of deprivation. This emphasis on collaborative solutions is evident in various sectors, particularly in developing critical infrastructure.

Take, for example, the development of heat networks. These projects are inherently complex, requiring the integration of diverse asset owners, engaged communities, and specialised technical solutions. The Procurement Act 2023 supports partnerships that de-risk investment and unlock new funding streams, including social impact finance and private capital. It also mandates a long-term perspective, requiring procurement to consider not just immediate costs, but the enduring benefits for communities. Ultimately, the Act provides a framework that encourages collaboration, enabling diverse entities to pool their resources for sustainable and efficient energy solutions.

This collaborative approach is essential for overcoming the challenges associated with large-scale infrastructure projects and ensuring they deliver maximum social and environmental value to communities. It aligns directly with Pineapple Partnerships' core mission. We are actively engaged with a broad spectrum of stakeholders, including funders, technical solution providers, and innovators, exemplified by our work with clients like Social Investment Business (SIB) and their Community Heat Networks - Funders Collective Hub. 

Achieving genuine social value alongside fiscal responsibility is complex, demanding strategic partnerships and a long-term perspective. We are enthusiastic about the opportunities this act presents and look forward to working with a wider array of strategic partners in the private, public and third sector to unlock the full potential of the Act and drive meaningful, sustainable impact. We encourage organisations to explore the potential of partnerships under the new Act and to contact us to discuss how we can support their efforts.