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Why use Cost Benefit Analysis?

The use of Cost Benefit Analysis supports businesses in gathering information around cost effectiveness, efficiency savings, value for money and return on investment. This helps to create a rationale for a project, intervention, or change in method.

The Social Profit Calculator streamlines all relevant data into a flexible tool, giving you the ability to forecast several outcomes related to fiscal savings and wider economic benefits. Using information from the HM Treasury Unit Cost Database to assess outcomes and measure impact, it can be tailored to include your own impact and value against Cost Benefit outcomes.

The Cost Benefit Analysis tool is built with over 1,000 fiscal and economic savings which can be applied to savings to public spending and the benefits to the wider economy. Public Sector Reform has meant that the use of Cost Benefit Analysis is becoming more popular, as the outsourcing of public services grows. The Private and Third Sectors can use Cost Benefit Analysis to deliver projects and services, helping them to maximise fiscal and economic impact and value.

What’s made Social Value essential?

Social Value is now a major factor in the procurement life cycle, due to the introduction of the Public Services Act (2012) and the Public Contract Regulation (2015). Organisations engaging with Public Sector projects need to understand what Social Value is, and how to calculate and report on it as a matter of urgency.

Cost Benefit focus on ‘hard’ outcomes that generate savings, whereas Social Value outcomes focus on the ‘softer’ outcomes related to improvements to the wellbeing of the individuals, families and communities you engage with.

With exclusive access to Social Value UK’s Global Value Exchange (GVE), the Social Profit Calculator has created a database with over 5,000 outcomes, indicators and proxy values used that can be used to calculate Social Value. The Social Profit Calculator has built in economic tools to update the proxy values to the year of your analysis. This means you can calculate Social Value in the past, present and future.

What are Impact Metrics?

In both Cost Benefit Analysis and Social Value Analysis we impact metrics to accurately calculate the value of what you deliver. We include regional and local data on deadweight, attribution, displacement, drop-off, duration, substitution and leakage to avoid overclaiming your value. Every outcome in our databased is supported by all required impact metrics.

Social Return on Investment (SROI)

SROI is the formula used to calculate the financial ratio from the total value against the costs of delivering a project or providing services.

SROI = Quantity x Valuation x (1 – (Σ Additionality))

What is Local Economic Benefit?

Local Economic Benefit analysis helps to give an understanding of the impact of a business, based on how an organisation or project spends money locally. The main focus is on retaining as much money in the local economy to support local economic growth. The more money that is spent on local employment and a local supply chain the more local economic benefit. Social Profit Calculator has developed 227 spending proxies across the UK, to account for what is spent locally through investing in local labour and a local supply chain making it easier to carry out Local Economic Benefit calculations and ratios.

Gross Value Added (GVA) Labour Productivity

GVA metrics can help you understand the Economic Impact through employment, investment, and sector specific contributions. The Social Profit Calculator has developed a GVA Calculator using Office of National Statistics (ONS) data that will evidence GVA Labour Productivity generated from investment at a regional, sub-regional and local level.

Environmental Impact and Sustainability

With the introduction of the Sustainable Development Goals (SDG’s), it is becoming important for businesses to evidence their Environmental Impact and Sustainability. Social Profit Calculator has 1,267 Environmental KPI’s, outcomes, proxy values and impact metrics which are incorporated into a Sustainability Platform so that an accurate calculation of Environmental Impact can be attributed to your Sustainability Strategy.