Stephen Muers, Chief Executive of Big Society Capital, the UK’s leading social impact investor, has commented on the Budget issued by the Chancellor today.
“While we are moving toward the end of this parliament, the problems facing this country don’t operate on the same timeline. The social impact investment sector will continue combatting social inequality and we are calling for the government to help facilitate this.”
“With that in mind, we welcome the £200 million for the extension of the Recovery Loan Scheme until the end of March 2026, but we would urge the Chancellor to make this permanent. It has played a vital role in supporting deserving SMEs and social enterprises and has facilitated positive change and economic growth to community-run pubs, social groups for elderly people, and food banks providing low-cost meals and employment to local people across the country. We hope that with the right changes the scheme can continue as a critical resource for UK businesses for years to come.”
“We are disappointed that a cap remains for wholesale community lenders using Community Investment Tax Relief. This small element of the policy hinders capital reaching organisations in disadvantaged communities who need it most. Our suggestion is lifting the cap to £25 million – this would be consistent with previous changes to CITR that the government has already introduced.”
“The Chancellor also voiced his desire for “more efficient, better value and higher quality public services”. Utilising outcomes contracts across commissioning in health, education, skills and many more has generated £10.20 of public value for every £1 of public money spent. The government must look to these models to commission better, more affordable and more effective services.”
“We are also looking forward to hearing more about the investment of £20 million into social finance to help develop housing schemes.”
“As we head towards a General Election in the next 12 months, we urge all parties to look to social investment for solutions to challenges spanning homelessness to increasing NHS waiting times. With a tightening fiscal environment, Big Society Capital and our partners can help attract socially motivated investment that will provide more social housing, improve public services at reduced taxpayer cost and support local economies to grow while improving their areas. Social investors are ready to help channel non-public funding to improve outcomes for people and drive growth.”
ENDS
About Big Society Capital
Big Society Capital is the UK’s leading social impact investor. Our mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. We do this by investing our own capital and helping others invest for impact too.
Since 2012, we have helped build a market that has directed more than £9 billion into social purpose organisations tackling issues from homelessness and mental health, to childhood obesity and fuel poverty, a ten-fold increase in ten years.