According to Pioneers Post Vince Cable MP, Secretary of State for Business, Innovation and Skills thinks the Labour Party has got it wrong on Social Enterprises. Labour’s proposal that they would make some public sector contracts available exclusively to social enterprises, if Labour wins the upcoming general election next year is, in his view, a step too far.
His view is that the Social Value Act 2013 goes far enough in encouraging local authorities to actively involve social enterprises and local businesses in bidding for in the public sector. However, others are not sure and the Act has come under criticism from several sources for failing to do just that. Cable seems to be of the view that local councils are failing to make use of the Act’s provisions due to a fear of being accused of some sort of favouritism and thus falling foul of rules intended to prevent corruption.
Whether Labour wins the next election or not, the issue of social enterprises becoming more involved in delivering public services is sure to be a topic of discussion and perhaps competition between the parties. certainly, when one looks at the health and social care sector, there are already some big players who are social enterprises, such as Plymouth Community Healthcare CIC, who are the biggest social enterprise in the health & social care sector listed on the RBS SE100 Index.