Nicola Dibb & Jo Davis explore how meaningful social value can be delivered through the planning system in developments, to benefit all.
Social value has evolved from a ‘nice-to-have’ into a fundamental pillar of planning policy, procurement, and project delivery. For developers and contractors, this shift brings both practical and commercial implications, particularly regarding compliance with Section 106 (S106) agreements and Employment and Skills Plans (ESPs), which aim to ensure that developments directly benefit local economies and communities.
Developers who fail to discharge S106 obligations at the required stage (usually before Practical Completion in the case of the Employment and Skills Plan) could result in the development being unlawful
or enforcement action being taken. It can also delay the formal approval process of planning applications.
Solve Social Value (SSV) is currently helping developers and contractors plan, deliver and measure their S106 and social value commitments, and so has a unique perspective on the challenges.
The consultancy is championing the social value cause more strategically, underpinned by their belief that social value requirements should be agreed earlier, possibly even at the planning application stage. This will place the emphasis on contracting authorities to set out their area priorities and encourage developers to consult with communities at a granular, local level.
The Public Services (Social Value) Act 2012 marked a turning point, requiring public bodies to consider wider social, economic, and environmental benefits in their commissioning. Today, this is often reflected in Local Plans and S106 agreements with an increasing emphasis on local employment, apprenticeships, training provision, SME engagement, and community activities.
For developers working directly with local authorities or public bodies (on Joint Ventures, for example), this is reinforced by the Procurement Act 2023, which sets out four objectives for public procurement, chief among them the need to deliver value for money and maximise public benefit. In practice, this places greater scrutiny on social value proposals, with most public sector tenders assigning a 10-20% weighting to the quality of a bidder’s social value response.
However, challenges exist. A well-meaning ESP or social value pledge can quickly become disconnected from the realities on the ground if it is developed too late, lacks alignment with local needs, or is seen as a compliance exercise rather than an opportunity for community enhancement.
We are seeking to promote a mindshift from compliance exercises and complaints from suppliers about the ‘cost’, and instead create an industry where social value is understood as a core driver of long term local economic growth and a facilitator of a smoother procurement process.
Early Engagement
To move beyond box ticking and deliver meaningful outcomes, early planning, collaboration, and genuine engagement with local authorities and communities are key.
One of the most effective ways to embed social value into a development is to start early, ideally, at the preapplication stage. By working with local authorities from the outset, developers and contractors can shape commitments that reflect genuine local priorities.
Unfortunately, however, we have discovered that according to the Local Government Association, only 23% of councils in the UK have a published Social Value Strategy. Therefore, it is sometimes difficult for developers to provide ideas for community benefits with little guidance on what is needed in a local area.
This disconnect has been captured in the recent report by the London Assembly, Social Value in Planning and Regeneration, published in April 2025.
Recommendations for the next London Plan include:
- Embedding a social value policy which builds on the foundations of good growth principles, and which sets out a process to ensure community voices are heard and reflected, and accounts for the unique character of a place;
- a toolkit for councils to protect and maximise social value through planning and regeneration.
Some more pioneering councils, such as Southampton City Council, are already requiring all major developments to submit a Social Value Strategy at the planning application stage. Feedback
from regional developers highlighted that more visibility and earlier collaboration with officers around social value will facilitate more robust proposals that are practically deliverable. We expect others to follow.
Some local authorities use a standard ‘one size fits all’ Employment and Skills Plan without understanding the nuances of individual projects, particularly relating to value or duration. We have been involved in negotiating several ESPs for clients.
It is vital to identify the correct officer at the council responsible for social value and keep them updated on performance against targets.
Working closely with Earlswood Homes from Reigate, we were able to steer discussions with the local London Borough on the impracticalities of delivering an apprentice on their project due to the short duration on site. Embedded within the standard ESP, the Borough wanted an apprentice delivered or they would levy a £26,000 penalty. We suggested an alternative solution which was accepted by the Council.
Chris Gwillam, regional director Earlswood Homes, commented: “Solve has been instrumental in helping negotiate a practical and deliverable Employment and Skills Plan with the Council, avoiding large financial penalties through non delivery and attended several community events on our behalf. It’s been vital to the project’s success and key to discharging our planning conditions. Solve has simplified the process for us, and their monthly performance reports generated by the Solve Platform are useful reporting progress back to Earlswood’s Board. As a company, we are pleased to be giving back to the local community and generating real added value as a result of our development.”
Engaging Communities
Community engagement is often cited as a core component of social value, but to be meaningful, it must be ongoing, two way, and genuinely responsive to local voices. Developers can utilise their often well honed approaches to resident consultation to generate a social value pledge for a specific development.
Best practice includes: workshops with local authority, residents or community groups to understand local needs. Mapping exercises, particularly in areas of historic underinvestment or vulnerable groups in the local area, are useful, as is talking to schools, colleges, and community centres as key local anchor organisations.
Tailoring pledges for the locality is vital. In some cases, this may mean offering career talks in local schools, or offering ‘meanwhile use’ of land for community activities during phasing.
We are ahead of the curve on this important aspect of development and procurement, and believe social value can become a differentiator in securing planning, winning public sector contracts and building long term relationships with local authorities.
There is a strong case for early stage engagement, including proactive preapplication community liaison. This could result in meaningful social value commitments based on identified local needs and lead to more favourable consideration of planning applications by local authorities.
Most developers, after all, carry out public consultation to gather feedback on their proposals, so this can become a perfect opportunity to gauge what additional benefits the community would like to see resulting from a new development. There is little point in allowing for a new, fully equipped playground if what is really needed is the refurbishment of a derelict building to provide new space for start ups or social enterprises.
Manisha Patel, director of masterplanning practice KPK Studios sees a distinct opportunity here: “We have been amazed at the scant regard some developers pay to engaging in a meaningful way with local communities in advance of large planning applications. A structured approach to social value can help address community concerns and improve the path through planning.”
Ultimately, the most effective social value is that which is planned with, not just for, the communities it is intended to support.
Nicola Dibb & Jo Davis are directors at Solve Social Value