How the Social Value Act (2012) contributes to wealth inequality in the UK
construction industry

Watts, GN; Higham, AP

Abstract

The Social Value Act (2012) (SVA) has legitimised public clients’ use of socially responsible
procurement criteria in construction and is used by some Local Authorities (LA's) with the
ultimate aim of reducing inequality. Despite this, reports suggest inequality is increasing
year on year. It could therefore be argued that the SVA is, at best, making no positive
difference to inequality. At worst it is further amplifying the gap between rich and poor. LA's
are also being forced to depend less on central Government funding, spending only the
money they generate. It could therefore be argued LA's in socially disadvantaged areas will
never generate the financial capital to invest in construction works. Therefore, never
experience social value, unlike more affluent LA's, further exacerbating inequality. This paper
aims to explore social value (SV) in more detail, analysing the changes in LA behaviour due to
the SVA and funding cuts. The paper also explores if there is a link between increased SVA
use and inequality. Interviews were conducted with LA's and construction contractors with
the results revealing that in some instances the SVA serves to widen and reinforce inequality.
Therefore, some LA's are potentially at risk of becoming trapped in a cycle of low income,
low construction investment, and low levels of SV, resulting in low income and high
deprivation. This research contributes to the previously unexplored negative ramifications of
the SVA and what this means for contractor Corporate Social Responsibility practices.

Citation

construction industry. Presented at International SEEDS Conference 2020 Climate Emergency – Applying Sustainability, Online (was due to be held at Leeds Beckett University, Leeds, UK)

• Presentation Conference Type: Other
• Conference Name: International SEEDS Conference 2020 Climate Emergency – Applying Sustainability
• Conference Location: Online (was due to be held at Leeds Beckett University, Leeds, UK)
• End Date: Sep 3, 2020
• Acceptance Date: Jul 6, 2020
• Publication Date: Sep 3, 2020
• Deposit Date: Jul 27, 2020
• Publicly Available Date: Sep 7, 2020
• Publisher URL: https://www.leedsbeckett.ac.uk/leeds-sustainability-institute/seeds-conference-2020/
• Additional Information: Event Type : Conference