Fundamentally Different is a space to bring brilliant people and organisations together. A space to think differently about public services in the Liverpool City Region and create real change in our communities.
So, what happened on our journey into the world of commissioning and procurement?
“This isn’t about bashing procurement,” Chris Catterall, Capacity’s chief executive, promised during his welcome. “It’s a tough job – teams are stretched and the demands are high.”
We were joined by two pioneers in collaborative, creative public sector procurement, Julian Blake and Sandra Hamilton, who lead the Transforming Public Services Team at Stone King LLP.
Julian Blake is a specialist public benefit lawyer who co-authored ‘The Art of the Possible in Public Procurement’. His colleague Sandra Hamilton, author of Public Procurement Price-Taker or Market-Shaper supports public authorities in developing more collaborative ways of working with VCSE community partners.
When it comes to complex human services, both are promoting a shift from procurement to partnership, creating new ways of working that highlight the need for more purposeful, creative and flexible public service commissioning. It’s an essential ingredient to delivering modern, effective public services.
Sandra got things underway with some historical context. The procurement orthodoxy isn’t an immovable force. It can be traced back to 1988, when public services began adopting market-based approaches in the Thatcher era (New Public Management for anyone who wants to go down that rabbit hole).
It was the perfect scene setter for the ‘In conversation’ part of the event. This blog can only skim the surface of a deep, thoughtful conversation, but here are some of the takeaways that left an impression.
Public good shouldn’t go to the lowest bidder
Market logic is often misapplied to complex public services and systems. Time and time again, we treat public services as if they were paperclips or bin bags. And, too often, social enterprises and charities are excluded from doing more life-changing, place-based work because they haven’t got the time to navigate outdated procurement systems.
‘The procurement guillotine’, as Julian described it, shuts down progressive conversations with the VCSE sector. The law’s not the problem. It’s how we apply it.
One council in London opened its books to the VCSE sector, revealing the true cost of a service. This radical transparency was the catalyst for local organisations to design something new and better. Why do we keep treating local community organisations like stationery suppliers, instead of the experts they are?
The tools exist. But no one’s using them
There are tools available – for example, grants, joint ventures, asset transfers. But they’re just not being used. Julian shared examples from across the UK – innovative approaches like Leicester’s Children’s Services, co-designed with Barnardo’s and Plymouth’s Alliance for People with Complex Needs, a collaborative model that brings providers into decision-making from the start.
One of the most compelling examples was the ‘Liberated Method’, adopted in Gateshead by Mark Smith, a previous speaker at Fundamentally Different. It’s an approach that targets the most complex and expensive public service users and rethinks how to provide support through relationships rather than rules. Life-changing outcomes at lower cost.
Social value isn’t an add-on. It’s kind of the point
Among Sandra’s excellent points, this landed powerfully in the room. Social value isn’t a nice-to-have. Community organisations, charities and social enterprises are powerful partners in delivering public services that change lives and improve our communities
In Liverpool City Region, there are brilliant for-profit and for-purpose organisations, where social value is at the heart of their organisations. But there’s a problem with social value frameworks like TOMS. For the VCSE sector they reduce social impact to a set of transactional, tick-box metrics – when social value is the core offer, not an add-on.
Commercial suppliers bolt on ‘extras’ to improve their social value score, while VCSEs deliver social impact as their purpose. Applying the same measurement lens flattens this difference and risks undervaluing what the sector uniquely brings to communities and public services.
We need to design procurement that allows the third sector to play to their strengths and build partnerships built on shared values, not just contracts. They’re solving problems for local authorities and the NHS, but in many instances, they’re not being supported. Public organisations should be asking – ‘how can we help you do more?’
Chris opened it up to the audience, and the questions and comments came pouring in. Here are some standout moments.
- We’re not seeing this approach at a strategic level. Procurement is still seen as a back-office function. It should be a leadership issue.
- There’s a crisis of imagination. We need to win the hearts and minds of leaders in the public sector. They need the skills and bravery to do things differently. There’s no point hitting the target and missing the point.
- Central government regeneration funding comes with clawback clauses. Try and do something different in procurement and you’ll be paying 100% of the funding back.
The panel
After a quick coffee break, Emma Lord, Capacity’s Director of Design and Doing, was joined by Liverpool City Region organisations to think about procurement and commissioning from a local perspective. They were:
- Jo Smith, Head of Strategic Commissioning at Liverpool City Council.
- Alex Shears, Deputy Charity Director at Open Door, a pioneering mental health and wellbeing organisation based in Wirral.
- Grace Harrison, a social entrepreneur and Organisational Development Lead for Kitty’s Laundrette.
It’s hard to fully capture the insights and ideas that fizzed around the room. Here are some of the key takeaways and quotes.
Emma opened the panel session with a simple question. Why should people care about procurement and commissioning?
Alex and Sandra both made potent and persuasive points. “Because public spending is never neutral. It shapes communities and defines what we value. It’s how we spend our money is how we live our values and reflect our community’s hopes.”
Procurement shouldn’t be one-size-fits-all.
A recurring theme throughout the day was proportionality. It’s a major issue. The system puts too much burden on small organisations. Public bodies asking for information that’s easily available to bigger organisations with more experience and resources. Do you really need the data you’re asking for?
Complex public services need creativity and imagination. But procurement tends to reward safe bets and standard answers. There’s little room for bold ideas. The challenge is to build partnerships and collaborations that prioritise experimentation – especially when the status quo isn’t working. We’ve sleepwalked into a system of rigid KPIs and punitive clauses leaving no space for flexibility or honesty. And in complex public services, that’s exactly what’s needed.
Small, local organisations are often disadvantaged
Too often, the system rewards the organisations best at navigating the bureaucratic maze, not the best ideas or deepest roots in the community.
No one articulated this better than Grace Harrison, from Kitty’s Laundrette – a social enterprise creating jobs, social infrastructure and community spirit in Anfield, one of the city region’s most disadvantaged communities.
She spoke honestly about the Kafkaesque experience of trying to make sense of the procurement system. “We filled in our first tender recently. It took ages. I had no idea if it was right. It was for £3,000 a year. It feels like we’re on a merry-go-round of speaking to people in the public sector, but I’ve got no idea where it ends up.”
Co-production matters
Throughout the day, one message rang out clearly – public services must be designed with people, not for them. Co-production isn’t risky – it’s responsible. But in many instances, people who rely on or deliver services have little or no say.
Procurement can support that. Regulations allow for early engagement with people using public services and even their involvement in awarding decisions. Co-production leads to better insights, more relevant services, and stronger public accountability. It also turns passive service users into active partners.
Jo was clear “Communities are the experts in their own lives. How can we be arrogant enough to think we know what’s best for local people?”
What if the rules aren’t really the rules?
What if one of the biggest barriers to better public services isn’t more money, but the myths we believe (and keep repeating) about how we spend it?
One of the most vivid takeaways from the day was how widespread and damaging myths around procurement are.
Jo and Sandra underlined the issue powerfully. “What’s become dominant are the myths. If procurement says no, not many people challenge it. Providers don’t challenge because they don’t think they can.”
Julian shared a stand-out example. “A local authority thought there was a barrier to talking to one organisation and didn’t go ahead at all. Same issue, different council – they tendered a contract – it took 2 years. Another council wanting to work with a unique provider, did a transparency notice to check no one else could provide the service and appointed after 15 days.”
Wrapping up
Chris Catterall, Capacity’s Chief Executive, brought the event to a close with some reflections.
The real issue isn’t the rules – it’s how we use them. Smaller organisations (like Kitty’s Laundrette) – closest to the community – can create more jobs and build social infrastructure in communities that desperately need it.
But social value isn’t some fringe benefit. It’s what defines success.
We heard real-life examples that demonstrate what’s possible when purpose replaces process. These aren’t theoretical models. They’re designed for specific community needs. But we need to move from single, one-off examples to systemic change.
So, what needs to change? How do we use procurement’s power in a more productive way?
It’s time to shift from a mindset of compliance to one of creativity, collaboration and partnership. That means involving people who use public services, engaging organisations early and ‘distinguishing market purchasing from system stewardship’.
The process should be designed to fit the purpose. The rules have changed. Now we need the courage to change with them.
It was another fantastic Fundamentally Different event. Full of energy, ideas and inspiring examples of brilliant people and organisations standing up to the cultures and systems that too often stifle the innovation that’s vital to making our public services better.
Thanks to everyone who joined us for bringing the event to life.
If you’re trying to make good trouble in your organisation, reach out. We know it can feel like you’re alone, but you’re not. We want to connect you with others who are pushing for change, sharing ideas and working in new ways. Let’s build solidarity, swap learning, and find ways to do this better – together. Get in touch. Join the conversation. Be part of the movement to make public procurement a force for real social change.
