The VCSE: Surrey's Hidden Economic Growth Partner

Rethinking Economic Growth
When we talk about economic growth, the conversation often centres on business investment, productivity, jobs and infrastructure. The voluntary, community and social enterprise (VCSE) sector is frequently viewed separately, appearing instead in discussions about health, communities, inequality and social cohesion. Yet this narrow view overlooks the important role the VCSE already plays within Surrey's economy.

The term VCSE covers a diverse range of organisations, including charities, community interest companies, social enterprises, housing associations, trusts and community groups. In Surrey alone, there are well over 4,500 registered organisations, operating at different scales and serving a wide range of needs.

An Important Economic Contributor
The VCSE is much more than a source of charitable activity. Evidence suggests that Surrey's VCSE sector could be supporting as many as 23,000 full-time equivalent paid jobs. It also mobilises a substantial volunteer workforce, purchases goods and services locally, attracts income and investment, and provides expertise that helps organisations engage effectively with communities.

The sector also plays a significant role in supporting employment. VCSE organisations help people access learning, skills and employment opportunities, while providing support that enables people to stay in work through services such as benefits advice, mental health and wellbeing support, support for carers, and assistance for children and families.

Moving Beyond Philanthropy
A common misconception is that the relationship between business and the VCSE is primarily about philanthropy, fundraising and corporate social responsibility.

However, national evidence highlights (sources cited below) the VCSE as a substantial supplier market, with up to 250,000 VCSE organisations active in public procurement and £23.7 billion of public sector contracts awarded to VCSE organisations between 2019/20 and 2023/24.

Businesses and public bodies can therefore think about the VCSE in three ways: investing in the sector, buying from the sector and working alongside the sector through strategic partnerships.

These partnerships can support workforce development, local employment, community engagement, health and wellbeing, innovation and social value.

Unlocking Future Growth
As Surrey develops its economic growth agenda, there is an opportunity to strengthen partnerships between economic growth organisations, public services and the VCSE. Better data, stronger relationships and a renewed focus on social value could help unlock the sector's full contribution.

The key message is simple: the VCSE sector is not merely a sector that needs support from business. It is part of Surrey's economic infrastructure, acting as an employer, supplier, business partner, innovator and creator of social value. Recognising that contribution is an important step towards a more inclusive and resilient approach to economic growth.

This piece has been written based on a presentation given by former Surrey VCSE Alliance Director Ben Collins. The content has also been informed by conversations with Surrey VCSE Alliance members who joined a lunchtime drop in.

Sources:
Department for Culture, Media and Sport (2025). Public procurement through VCSEs, 2019/20 to 2023/24
https://www.gov.uk/government/publications/public-procurement-through-vcses-201920-to-202324/public-procurement-through-vcses-201920-to-202324-summary-report

Tussell for Department for Culture, Media and Sport (2025/2026). Public Procurement through VCSEs FY19/20–FY23/24
https://assets.publishing.service.gov.uk/media/6a6764fcd11ecb423d5ab77f/VCSEs_in_Public_Procurement_2025_update_version.pdf

Department for Digital, Culture, Media and Sport (2022). The role of Voluntary, Community and Social Enterprise (VCSE) organisations in public procurement.
https://assets.publishing.service.gov.uk/media/6a6764fcd11ecb423d5ab77f/VCSEs_in_Public_Procurement_2025_update_version.pdf

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