'Big Society bill' boosted by Commons backing

Earlier this month, MPs voted for a bill that would require all public sector contracts to demonstrate how they would deliver positive social, economic and environmental benefits to communities to be sent to a Public Bill Committee for scrutiny.

Organisations such as the Social Enterprise Coalition (SEC), which represents social enterprises across England, have campaigned to rally support for Chris White MP’s private members bill – the so-called Public Services (Social Enterprise and Social Value) Bill - for some time, and the fact that it will now go through to committee stage, awaiting a reading and debate in the House of Lords, marks a significant step forward for them.

If passed, the bill would make social impact a statutory consideration in public services procurement, meaning that contracts would have to deliver added benefits such as the creation of local jobs or the reduction of carbon emissions. The implications for the social enterprise sector could potentially be huge – as the requirements contained in the bill would be an added incentive for commissioners to appoint social enterprises as public service providers.

'It could become one of the most important pieces of legislation for our sector in a generation' Peter Holbrook, Social Enterprise Coalition

What’s more, the legislation would encourage public bodies to ensure that public services have clear social benefits. Many would see this as particularly important given the coalition’s recent decision to scrap the social-economic duty contained in Labour’s Equality Act, which would have forced public bodies to consider how any strategic decisions would impact on the poorest groups of people.

Civil society minister Nick Hurd was one of the members who voted in favour of the bill. Former communities minister Hazel Blears did the same.

SEC chief executive Peter Holbrook (pictured above with Prime Minister David Cameron) said: "We cannot be anything other than delighted with the result of the vote. It was a major hurdle to overcome. As a result of this bill we have increased awareness of the importance of social enterprise and social value among MPs.

"If the bill proceeds, it could become one of the most important pieces of legislation for our sector in a generation. The fact that it has support from the three main parties makes the turning of this bill into law next year a very real possibility."

And a statement from Senscot, which represents Scottish social enterprises, said: "In England, the private members bill to make social impact a consideration in public sector procurement, now has government backing and stands an excellent chance of getting through. This would be a significant advance for our movement."

Now that the proposed legislation has passed second reading it will go the Public Bill Committee in early 2011 to be debated further, so watch this space.

By Sarah Townsend

Social enterprise in pictures

It was national Social Enterprise Day yesterday and, in case it passed you by, we’ve put together a slideshow of eleven photographs that are going head-to-head in a competition "to find the image that best shows the unique and transformative work of social enterprise" – so say its organisers.

The Social Vision: Business at its Best competition, which is now in its third year, is run by umbrella body the Social Enterprise Coalition and social lender Triodos Bank. The organisations are asking members of the public to take part in an online vote to decide which image should win.

So, have a browse through the images – which depict various social enterprises in action, such as homeless people learning cooking skills, children participating in a walk-to-school scheme and an engineer restoring an old washing machine to save it from landfill – and visit http://www.socialenterpriselive.com/competition if you’d like to vote. The deadline is 30 November.

UPDATE 1 December: Fordhall Community Land Initiative, a community-owned farm in Shropshire, was named winner of the photo prize last night. The winning photo will be on display alongside the other finalists as part of a free exhibition at Lumen gallery space in Tavistock Square, London, until 7 January 2011.

By Sarah Townsend

Scottish social enterprises defined

We've had a further update on the mooted Scottish version of the Social Enterprise Mark (SEM) - the Fairtrade-style quality mark, or identifier, for social enterprises. Senscot, the umbrella body for social enterprises in Scotland, has drafted proposed criteria for how Scottish social enterprises should be defined.

In a statement to its members, it lists five criteria:

1. Social enterprises have social and/or environmental objectives
2. Social enterprises are trading businesses aspiring to financial independence (and earning 50 per cent or more of their income through trading)
3. Social enterprises have an "asset lock" on both trading surplus and residual assets. No more than 35 per cent of profit may be distributed in dividends. At least 65 per cent must be reinvested in social and/or environmental aims
4. Social enterprises cannot be the subsidiary of a public sector body
5. Social enterprises are driven by values - both in their mission and business practices

The statement also includes the proposal that the responsibility of awarding a Scottish SEM to social enterprises should rest not with one particular agency, but with a self-regulating cooperative of active social enterprises.

As reported in our blog last week, Senscot's sounding board asked the organisation to put together the statement after it refused to act as the Scottish partner for the London-managed SEM. Senscot disagreed in the criteria for the London mark, as it believed that organisations should be required to demonstrate that they reinvest more than 50 per cent of their profits in activities to support social and/environmental goals.

Senscot is now submitting the statement to its sounding group for feedback and if it is accepted, will ask the Scottish Government for investment support.

For more information click here

Scotland makes its social enterprise mark

Another update from Senscot, the umbrella body for social enterprises in Scotland: 75 per cent of its 130 members voted in favour of a Scottish version of the Social Enterprise Mark (SEM) - the Fairtrade-style quality mark for social enterprises - in a recent poll conducted by Senscot.

The organisation disagreed with the SEM's criteria - that organisations can apply to purchase the mark provided they can demonstrate that they reinvest at least 50 per cent of their profits in activities to support social and/or environmental goals. Senscot believed that this figure should be higher, claiming that such a "broad-church approach could blur the boundaries between social enterprise and other sectors", and consequently refused to act as the Scottish partner for the London-administered SEM.

As reported in our blog earlier this month, Senscot instead decided to consult with its members on alternative ways of securing a mark of recognition - or identifier, as it calls it - for Scottish social enterprises. Following the outcome of the poll, Senscot's sounding group has asked the management to prepare a statement of "what it understands to be the criteria by which the social enterprise community in Scotland wishes to define itself". The statement will be circulated among members for reaction and then Senscot plans to approach the Scottish Government for support in creating the mark.

I've been informed that the criteria paper will be made available next week, so watch this space - it's looking increasingly likely that Scotland will in fact be able to get its own mark.

In the meantime, click here for poll results and comments from Senscot members.