Newham Council has officially approved its new Social Value Procurement Policy, establishing a framework for all procurement activities exceeding £150,000.

The policy, adopted by the council's Cabinet on Tuesday, March 17, 2026, aims to strengthen social value expectations, clarify ethical standards, embed environmental responsibilities, and improve access for small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprise (VCSE) organisations.

This new policy aligns with the Public Services (Social Value) Act 2012 and the Procurement Act 2023. It will be applied to all contracts with a net value over £150,000.

Newham Residents' Survey 2025 satisfaction trends
Newham Residents' Survey 2025 satisfaction trendsSource: Cabinet papers, 17 March 2026

The Social Value Procurement Policy establishes guidelines that will continue to develop as data and contract management improve. It aims to deliver a more transparent, equitable, and outcomes-focused procurement system that directly supports the Council's Corporate Priorities and Community Wealth Building ambitions.

Key Social Value Outcomes and Measurement

Under the new policy, Newham Council will prioritise several key social value outcomes:

  • Inclusive Economic Growth: This includes a focus on job creation, apprenticeships, SME growth, and developing local supply chains.
  • Communities & Neighbourhoods: The policy will support improvements to community spaces, youth activities, and foster neighbourhood cohesion.
  • Sustainability & Environment: Efforts will be made to promote carbon reduction, waste minimisation, improved air quality, and the development of green infrastructure.
  • Support for VCSEs: The council will facilitate capacity building, pro-bono support, funding opportunities, and partnership working with Voluntary, Community, and Faith sector organisations.

Newham Residents' Survey 2025 satisfaction with local area
Newham Residents' Survey 2025 satisfaction with local areaSource: Cabinet papers, 17 March 2026

The success of the policy in achieving its aims will be measured by its impact on residents' daily lives, ensuring council spending delivers community benefit. Specifically, the policy aims to:

  • Improve Access to Good Jobs, Skills and Fair Pay: Residents will benefit from increased local employment, apprenticeships, training pathways, and access to higher-quality jobs through supplier commitments. Mandatory London Living Wage compliance for relevant contracts will ensure fair pay.
  • Strengthen Local Neighbourhoods: Procurement will contribute to improvements in parks, libraries, community centres, and youth facilities, enhancing wellbeing and community pride.
  • Reduce Environmental Harm: Suppliers will be encouraged to adopt sustainable practices, reducing carbon emissions, waste, and pollution, thereby improving local environmental quality and residents' health.
  • Support the VCSE Sector: Collaboration between suppliers and local community organisations will lead to expanded services and targeted support for underserved groups.
  • Promote Fairness and Transparency: Greater accountability from suppliers, improved contract performance, and stronger protections against exploitation in supply chains are expected.
  • Increase Local Economic Benefit: Encouraging participation from local and small businesses will ensure more council spend remains within the borough, fostering economic resilience.

Ensuring Access for SMEs and VCSEs

To ensure SMEs and VCSE organisations can genuinely access and compete for contracts, the policy incorporates several mechanisms:

  • Proportionality Principles: These ensure that contract requirements are achievable for smaller organisations.
  • Support for Participation: The council will continue to offer support through proportionate requirements and increased transparency.
  • Local Supplier Definition: A local supplier is defined as one delivering any part of a contract from premises within Newham, with flexibility to include neighbouring authorities. The policy also allows for advertising below-threshold opportunities via Find a Tender for defined localities.
  • Values and Action Framework: This framework links priorities to deliverable projects, offering contractors suggestions that can be tailored to their expertise.
  • Pre-market Engagement: The policy encourages engagement with the market before formal procurement to ensure social value commitments are focused and achievable.

Enhancements and Ethical Standards

This new policy represents a significant enhancement compared to previous procurement practices. Existing guidance was outdated and inconsistent, with departmental approaches to social value varying widely and monitoring processes being weak or absent. The new policy establishes a consolidated, council-wide approach that embeds good governance, social value, and environmental responsibility throughout the procurement lifecycle.

Newham Residents' Survey 2025 demographic breakdown
Newham Residents' Survey 2025 demographic breakdownSource: Cabinet papers, 17 March 2026

To ensure ethical standards and environmental responsibilities are consistently upheld, the policy sets mandatory expectations for officers and suppliers. These include adherence to the Council's Code of Conduct, clear management of conflicts of interest, compliance with whistleblowing, anti-fraud, and anti-corruption measures. Suppliers are also required to prohibit forced labour and child labour, comply with the Modern Slavery Act 2015, and demonstrate ethical supply chain management.

Implementation Timeline

The policy applies to all contracts with a net value over £150,000. While the recommendations include delegating authority to the Interim Assistant Chief Executive Change & Improvement & Corporate Director of Resources (Section 151 Officer) to issue supporting guidance, deliver training, and update internal processes for full implementation, a specific timeline for this rollout is not explicitly stated.

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