The report emphasises how the Council has aimed to maximize social returns through the procurement of goods and services, as well as through managing key assets.
Kensington and Chelsea Council has published its first-ever social investment impact report, offering a comprehensive overview of the social, economic, and environmental benefits the Council has delivered for its residents. The report, covering activities from the 2023/24 financial year, showcases the positive outcomes generated through the Council’s investments in public services, assets, and partnerships with local organizations.
The newly released report emphasises how the Council has aimed to maximize social returns through the procurement of goods and services, as well as through managing key assets such as housing, parks, and properties on behalf of residents. It also provides detailed calculations of the return on investment (ROI) for specific social investment projects, based on real-life outcomes like improved health, enhanced skills, and greater employment opportunities.
Notably, the report reveals that for every £1 spent on certain projects, the Council achieved substantial returns in terms of social value. For instance, the DigitALL project, which helps residents access digital technology and improve their digital skills, generated £3.40 for every £1 invested. Similarly, the Children’s Book Project, which offers a social investment lease in North Kensington, saw a return of £2.07 for every £1 spent, while the Money Cafes, where residents receive financial support, generated £4.83 for every £1 invested.
In addition, employment and skills programs, aimed at helping residents enter training and secure jobs, produced £3.31 for each £1 invested. Educational activities for young people at Leighton House Museum generated £2.57 for every £1 spent. These figures highlight the significant social returns generated through investments in areas such as education, financial support, and employment.
The Council has also achieved impressive social returns through its procurement activities. For example, a waste management contract with Suez generated an additional £7.7 million in social value, while a parks contract with Idverde created over 7,000 volunteering opportunities, three apprenticeships, and two internships.
Social investment, as outlined in the report, refers to the Council’s efforts to ensure that its spending and resources create the best possible outcomes for the community. This includes the use of grants, partnerships with anchor institutions and businesses, and a focus on investing in local voluntary and community sectors. The approach aims to generate long-term social benefits by prioritizing community welfare alongside financial efficiency.
One key driving force behind the Council’s focus on social investment is the aftermath of the Grenfell Tower tragedy. In response to the bereaved families’ and survivors’ challenges, the Council has committed to embedding social value in its decision-making process. This represents a shift from solely focusing on the financial value of buildings and spaces, to considering how they can also provide social benefits for the community. The aim is to ensure that the social impact of the Council’s decisions is just as important as financial considerations.
A crucial part of this approach involves integrating social value into every aspect of decision-making. The Council seeks to balance financial considerations with a strong focus on achieving positive social outcomes, such as community cohesion, increased wellbeing, and improved access to services. This methodology will guide how public assets and resources are managed and allocated, ensuring that decisions are transparent, fair, and focused on addressing inequality.
In addition to the social returns from specific projects, the report includes an explanation of how the Council measures social value. Using frameworks such as the HM Treasury’s Magenta Book and Green Book, along with the Social Return on Investment (SROI) methodology, the Council has developed a robust approach to measuring and monetizing social outcomes. This enables the Council to assess the effectiveness of its investments and track progress toward its goals.
The Social Investment Impact Report serves as a baseline for future assessments, with the aim of improving and refining social investment strategies over time. The Council plans to use this data to inform resource allocation and decision-making, ensuring that the needs of residents are met in a transparent and equitable manner. This approach is particularly important as the Council navigates budget pressures and seeks to address the challenges posed by increasing demands for services.
Looking forward, Kensington and Chelsea Council aims to build on the successes of its social investment initiatives, continuing to focus on reducing inequality and promoting opportunity for all residents. Through transparent reporting and a commitment to social value, the Council hopes to set a standard for how local authorities can effectively integrate social investment into their decision-making processes.
