"Social Value? It’s Not About the Money"

Over the last decade, social value has become critically important for those of us delivering impactful and meaningful regeneration and placemaking.

This shift is partly due to the Social Value Act 2012, which requires public sector bodies to consider social value when awarding contracts. The Act has accelerated the integration of social value across both the public and private sector.

At its core, social value aims to move beyond monetary assessments to quantify the benefits of regeneration and placemaking. It is designed to challenge the traditional approach to ‘best value’, which has often been measured solely through financial metrics.

Social value is built on three key pillars: economic, social, and environmental. These encompass a wide range of measures, from job creation and community well-being to biodiversity and sustainability. When implemented effectively, social value promotes interventions and investments which generate lasting benefits for communities.

For instance, at Lewisham Gateway, we have delivered a mixed-use regeneration that goes beyond the creation of 1,000 new homes. It has introduced the borough’s first multiplex cinema, anchoring a growing nighttime economy and improving pedestrian links between the town centre and its main transport hub. The long-term community benefits extend well beyond the total investment.

However, despite the intention to move beyond financial metrics, social value is often still represented in monetary terms.

In some cases, this remains appropriate. For example, at Talbot Gateway in Blackpool, we delivered a 144-bedroom hotel while also creating 863 weeks of apprenticeships and 87 weeks of meaningful work experience for local people.

The reported social value impact of this initiative exceeded £4.5 million, directly linking employment opportunities and economic benefits to a monetary value.

Similarly at Manor Road Quarter in Canning Town, through the regeneration of a former industrial and commercial area, we are delivering 804 homes, 50% being affordable.

Not only can we deliver homes the community needed, but we have created 437 new jobs, many of which have been secured by Newham residents, along with 38 apprenticeships – working alongside our delivery partners, Morgan Sindall Construction.

Yet, other initiatives present challenges.

At Eden in Salford, we have developed one of the UK’s most sustainable buildings, featuring Europe’s largest living wall with 350,000 plants and a biodiversity net gain of 2,000%. The positive impact on community well-being, air quality, and urban biodiversity is undeniable, but the financial value is difficult to define.

Similarly, at Greenhaus in Salford, we have partnered with Salix Homes to deliver 96 Passivhaus-certified, affordable homes. These homes significantly reduce energy bills for low-income families. While the monetary savings may appear modest, the impact on a family’s financial stability can be transformative.

It is a truism that what gets measured, gets done. It is a tempting to focus on quantifiable outcomes such as job creation, investment, and training. While these are crucial, they do not capture the full scope of what social value can and should encompass.

This requires bold thinking and strong partnerships, with a willingness to make decisions that may not deliver immediate financial returns but create profound benefits over time.

Social value is an essential metric, but its effectiveness is hindered when we continue to frame it primarily in financial terms. If we truly want to create lasting, meaningful change, we must continue to shift our focus away from chasing financial value to recognizing the broader benefits which strengthen communities.