The Social Investment Business response to the Budget

Thursday 22 July 2010

Responding to today’s Budget in which Chancellor George Osborne announced numerous cost-cutting measures, including that most government spending departments will see 25 per cent reductions in their budgets over the next 4 years, The Social Investment Business Chief Executive Jonathan Lewis said:

“As well as doing what it can to promote and protect business and steward public services through these tough times, the government must be mindful of the challenges a recession poses to the small local charities and social enterprises that we support. Especially as they will play a greater role in delivering public services as big spending government departments see their budgets cut.

“The needs of the people who charities support are constant, and indeed increase during times of economic hardship. Individuals and families who depend on the support of charities and local services need to know that they can trust those organisations to be there for them for life.

“Two separate independent evaluations have found that the method we use -  grants, loans and business support – is a highly effective way of making civil society organisations financially sustainable.  And moreover, money that is lent is repaid with interest and can be re-lent leading to an evergreen fund.

“Building a stronger civil society can’t happen spontaneously and it won’t happen without government help – something that the new coalition government clearly understands. Government will always subsidise the sector in one way or another and to ensure best value for public money I encourage policy-makers to consider whether some money currently distributed as grants could be redirected into programmes that combine them with loans and support.

“We aim to work closely with the new government to ensure the sustainability of civil society organisations so they can build thriving local communities and deliver effective local services – realising David Cameron’s vision of a Big Society.”

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1. For further information or interviews, please contact The Social Investment Business press office:

Liz Banks - 0207 842 7726/ 07809 504072  liz.banks@socialinvestmentbusiness.org

Nicola Jones - 0207 842 7755 nicola.jones@socialinvestmentbusiness.org

2. The Social Investment Business, the fastest growing social investor in the UK, exists to help social enterprises, charities and community organisations do more of what they do best – supporting people and communities most in need. We help organisations prosper by providing innovative financial solutions, business support and long term strategic thinking.

www.thesocialinvestmentbusiness.org @TheSocialInvest

3. The Social Investment Business manages Government funds on behalf of the Office for Civil Society, the Department of Health and the Department for Communities and Local Government, with over 1,000 active investments. These range from £3,600 to help a small organisation bid successfully for a public sector contract, to £6.7million to help a large national charity establish and develop innovative new services for children and young people.

Notes to editors

1. For further information or interviews, please contact The Social Investment Business press office:

Liz Banks – 0207 842 7726/ 07809 504072  liz.banks@socialinvestmentbusiness.org

Nicola Jones – 0207 842 7755 nicola.jones@socialinvestmentbusiness.org

2. The Social Investment Business is the fastest growing social investor in the UK. We exist to help the third sector do more of what it does best – supporting people and communities most in need. We help the sector prosper through access to finance, business support and long term strategic thinking.

www.thesocialinvestmentbusiness.org

3. The Social Investment Business manages Government funds on behalf of The Office of Civil Society, the Department of Health and the Department for Communities and Local Government, with over 600 active investments. These range from £3,600 to help a small organisation bid successfully for a public sector contract, to £6.7million to help a large national charity establish and develop innovative new services for children and young people.