New government rules will scrap the requirement for companies to demonstrate green and progressive values when bidding for public sector contracts. Instead, firms will need to prove they will help young people into work.
Public sector buyers will now give double the consideration to a company's commitment to job creation, rather than its social and environmental wellbeing improvements. This change is part of a government initiative to reduce the number of people not in education, employment or training (Neets) and to stimulate regional growth.
Louise Haigh, the first secretary of state, stated that the move aims to ensure that the £90bn spent annually on government contracts supports British jobs, skills, and people across the country. She added that the previous requirements often locked out small businesses.
Under the new measures, the social value weighting for government contracts will increase from 10% to 20%. This weighting will now focus on securing contracts with companies that create local jobs paying above the minimum wage, offer training, work experience, or address local skills gaps. Contracts valued at less than £1m will be exempt.
Environmental and green campaign groups have criticised the plans, arguing that job creation should not come at the expense of environmental protection. Ami McCarthy of Greenpeace UK said that protecting the environment and helping young people into work are mutually beneficial.