Scottish public procurement has moved decisively beyond price and process. Through a series of Scottish Procurement Policy Notes (SPPNs), the focus is now firmly on how procurement can deliver lasting economic, social and environmental benefits alongside value for money.
Policy notes such as SPPN 2/2021 on Community Wealth Building, SPPN 3/2022 on Fair Work First, and SPPN 4/2021 on Community Benefits all point in the same direction: procurement should create long-term value for people and place.
For many organisations, the challenge is not understanding these policy expectations, but putting them into practice in a way that delivers real outcomes. Increasingly, this is being addressed through procurement approaches that embed social value structurally, rather than relying on one-off project commitments.
Below is a practical, real-life example of how Procurement Hub demonstrates that these Procurement Policy Notes can be translated from policy intent into tangible, measurable outcomes on the ground.
Embedding Social Value through procurement
Procurement Hub’s solutions and Giving Back strategy provide a clear example of this approach in action. Rather than being an optional add-on, Giving Back is a structured model where surplus generated through procurement activity is reinvested directly into communities.
There are no shareholders and no profit extraction. Instead, funds are channelled into charities, local community programmes and targeted social impact initiatives.
This approach aligns closely with:
SPPN 2/2021 – Community Wealth Building
SPPN 4/2021 – Community Benefits
Both policy notes focus on retaining value within local economies and delivering visible social outcomes.
Within construction frameworks such as the Major Projects Framework (MPF2), these objectives are translated into clear and measurable KPIs, including:
At least 90% of project value delivered through local supply chains and SMEs
Up to 8 new jobs created per £5 million of project value, supporting local employment
Charitable or community benefit funding from each £5 million project, reinvested through Procurement Hub’s Giving Back model
Reinvesting procurement value into Communities
The Giving Back model strengthens delivery by ensuring that surplus generated through procurement is not extracted as profit, but reinvested directly into charities and community programmes.
Funding supports grassroots organisations delivering services such as:
Food security initiatives
Youth services
Homelessness prevention
Investment is targeted specifically at the communities where procurement activity takes place, helping to reinforce local economic resilience.
To date, £1.5 million has been invested through this approach.
Another key policy driver is SPPN 3/2022 on Fair Work First, which requires fair pay, secure work and responsible employment practices.
Within MPF2, these principles are embedded through financial and contractual KPIs, including:
100% of subcontractors paid within 19 days or less on every MPF2 project
Mandatory reporting on payment performance and financial stability
Supply chain transparency to support SME confidence
Giving Back further reinforces Fair Work principles by supporting organisations focused on employability, skills development and inclusion.
This includes projects such as:
Pilton Youth and Children’s Project (Edinburgh)
The Angels Foundation UK
The Ferry Project (Cambridgeshire)
St Petrock’s (Exeter and Devon)
These initiatives help people access and sustain fair work opportunities within their communities.
Delivering measurable outcomes
What makes these approaches effective is not aspiration, but structure.
KPIs are mandatory, monitored and reported, while Giving Back is planned, funded and transparent. Together, they demonstrate how Scottish procurement policy can be delivered in a way that is practical, measurable and genuinely beneficial to communities.