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Require
the Secretary of State and local authorities to publish strategies
in |
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connection with promoting
social enterprise; to enable communities to |
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participate in the formulation
and implementation of those strategies; to |
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require that public sector
contracts include provisions relating to social |
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outcomes and social value;
and for connected purposes. |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
National
social enterprise strategy |
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(1) |
The Secretary of State must
prepare and publish a document setting out a |
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strategy for the promotion
by government departments of engagement in |
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social enterprise in England
(the “national social enterprise strategy”). |
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(2) |
The national social enterprise
strategy must be designed with a view to |
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promoting participation in
its implementation by persons or bodies appearing |
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to the Secretary of State
to be representative of those engaged in social |
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enterprise and by the public,
whether by monitoring its effectiveness or |
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(3) |
The Secretary of State may
review the national social enterprise strategy and |
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prepare and publish a new
strategy to replace a previous national social |
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(4) |
In preparing the national
social enterprise strategy or a new strategy, the |
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(a) |
consult such persons or bodies
appearing to the Secretary of State to be |
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representative of those engaged
in social enterprise as the Secretary of |
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State considers appropriate; |
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(b) |
carry out such public consultation
as the Secretary of State considers |
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(5) |
For the purposes of this
section a person or body is engaged in social enterprise |
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(a) |
the person or body is carrying
on a business; |
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(b) |
the
business’s activities are being carried on primarily for
a purpose |
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that promotes or improves
the social or environmental well-being of |
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the United Kingdom, whether
the purpose is pursued in relation to all |
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or any part of the United
Kingdom or all or any of the persons resident |
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(c) |
the greater part of any profits
for distribution is applied for such a |
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2 |
Local
authority strategies |
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(1) |
Section 4 of the Local Government
Act 2000 (strategies for promoting well- |
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being) is amended as follows. |
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(2) |
After subsection (1) insert— |
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“(1A) |
A local authority’s
sustainable community strategy must include— |
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(a) |
their proposals in connection
with promoting engagement in |
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social
enterprise in their area, and |
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(b) |
a statement of measures
proposed for enabling persons or |
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bodies
engaged in social enterprise in their area and such other |
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persons
as they consider appropriate to participate in the |
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implementation
of the proposals referred to in paragraph (a).” |
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(3) |
After subsection (4) insert— |
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“(4A) |
For the purposes of this
section a person or body is engaged in social |
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(a) |
the person or body is carrying
on a business; |
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(b) |
the business’s activities
are being carried on primarily for a |
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purpose
that promotes or improves the social or environmental |
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well-being
of the United Kingdom, whether the purpose is |
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pursued
in relation to all or any part of the United Kingdom or |
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all
or any of the persons resident or present in it; |
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(c) |
the greater part of any
profits for distribution is applied for such |
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3 |
Contracts
of contracting authorities |
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(1) |
Subsections (2) to (4) apply
where a relevant authority is considering, in |
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connection with the exercise
of a function of the authority, the use of a public |
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(2) |
The authority must consider
how it might promote or improve the economic, |
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social or environmental well-being
of the relevant area by means of such a |
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(3) |
The authority must consider
under subsection (2) only matters that are |
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relevant to the subject-matter
of the contract and must consider the extent to |
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which it is proportionate
in all the circumstances to take those matters into |
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(4) |
The authority must consider
whether to consult the persons (if any) for whom |
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the authority is making provision
in the exercise of that function. |
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(5) |
If the authority takes steps,
in connection with the exercise of that function, for |
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the purpose of entering into
a public procurement contract, it must consider |
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how to take into account
the matters (if any) identified by it in its consideration |
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(6) |
The authority must consider
under subsection (5), where that is appropriate in |
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relation to a matter so identified,
the inclusion of provisions relating to that |
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(7) |
The relevant area, in relation
to a function of a relevant authority, is— |
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(a) |
if the area as regards which
the function is exercisable is England and |
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Wales or an area within England
and Wales, that area; |
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(b) |
in any other case, the United
Kingdom. |
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(8) |
This section does not apply
in relation to a function exercisable by the Welsh |
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Ministers, the First Minister
for Wales or the Counsel General to the Welsh |
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(9) |
This section does not apply
in relation to a function— |
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(a) |
conferred or imposed by or
under a Measure or Act of the National |
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(b) |
exercisable in or as regards
Wales and relating to matters within the |
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legislative competence of
the National Assembly for Wales, or |
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(c) |
in relation to which functions
are exercisable by the Welsh Ministers, |
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the First Minister for Wales
or the Counsel General to the Welsh |
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and
in relation to which no functions are exercisable by a Minister
of the Crown |
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or government department. |
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(10) |
For the purposes of subsection
(9)— |
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(a) |
section 70(5) of the Climate
Change Act 2008 has effect in relation to a |
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function of a relevant authority
and functions exercisable by a Minister |
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of the Crown or government
department as it has effect in relation to a |
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function of a reporting authority
and functions so exercisable; |
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(b) |
section 70(7) of that Act
has effect in relation to a function of a relevant |
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authority and functions exercisable
by the Welsh Ministers, the First |
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Minister for Wales or the
Counsel General to the Welsh Assembly |
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Government as it has effect
in relation to a function of a reporting |
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authority and functions so
exercisable. |
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“public procurement
contract” means a contract that is regulated by the |
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“the Regulations”
means the Public Contracts Regulations 2006 (S.I. 2006/ |
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5) and includes any regulations
amending or replacing those |
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“relevant authority”
means a person or body that is a contracting |
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authority for the purposes
of the Regulations. |
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There
is to be paid out of money provided by Parliament any expenditure
incurred in |
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consequence
of this Act by a Minister of the Crown, government department
or other |
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