New data from public sector procurement authority SCAPE has revealed that local investment has been the highest generator of social value in construction 2024.
In the past year, construction sector investment in local spend has exceeded £1bn, increasing by 65% year-on-year as the sector continues to prioritise social value delivery at a local level.
Notably, the Social Value in Construction Benchmarking Report 2025 findings show that throughout the country there has been a significant investment in MSMEs, rising by 51% to £362m. This increase reveals the construction industry’s growing commitment to supporting smaller and local businesses, aiding supply chain resilience and sustainable economic growth.
Published today by SCAPE in partnership with Social Value Portal, the report explores how national and local delivery strategies are evolving, and how social value themes are influencing outcomes across the UK construction and infrastructure sectors. The report has been produced annually since 2020, drawing on the combined expertise and industry reach of Social Value Portal, SCAPE and its delivery partners to provide a definitive review of social value in public sector built environment projects.
Overall, the report found that social value measures in construction continue to increase, indicating that communities continue to benefit from construction projects within their locality. According to SCAPE’s report, improved understanding of social value, focus on outcome delivery and increased inclusion of social value KPIs in contracts all play a part in this result.
2024’s report showed that employment, including apprenticeships, was the highest generator of social value. This year, the category now sits in second place, although still an important contributor to social value outcomes, with local employment growing by 31%.
In this year’s report, it is clear that construction project sizes are growing, with the average project sitting at £10.5m. Social value achieved through local jobs and spending with local suppliers has reached a record high of £1.17bn. Notably, nearly all social value directly supports local jobs and local spend which represent around 27% of contract value, maintaining consistency with previous years.
However, the data shows that delivery varies significantly by region. Leading the way with a total number of projects at 110 is the North West, with £235m social value delivered. The report reveals that the region demonstrates strong breadth across local and MSME investment and social contributions, helping drive growth in the area. Following closely is Yorkshire & The Humber, with £123.5m social value delivered across 27 projects.
Looking forward, SCAPE highlights that bigger projects will continue to be strong social value drivers as they provide larger returns on investment (ROI). Projects valued over £20m have become the largest contributors to social value, delivering 9% more than lower-value projects and 20% more than projects over £75m, overall achieving 30% ROI.
Caroline Compton-James, Deputy Chief Executive at SCAPE, said: “This year’s report shows that by embedding social value into procurement and delivery, we’re proving that construction is a powerful engine for inclusive economic growth, local job creation, and long-term resilience. This year’s findings mark a pivotal moment for public sector construction. The North West’s strong delivery over the past year is a real exemplar of how localised investment strategies can drive positive outcomes on a national scale. As we look ahead, and as the changes to the Procurement Act come into full force, the challenge is clear: we must scale this impact further by continuing local spending and ensuring that every pound spent delivers meaningful outcomes.”
The report is available on SCAPE’s website here: https://scape.co.uk/benchmarking-report
