15 February 2011
The government has launched a document, Growing the Social Investment Market: A vision and strategy, which charts the future course the coalition government is going to take to grow the social invest market, helping build the Big Society.
CDFIs are seen as key in the future of this emerging market, with a track record of having provided social finance for many years. The Community Investment Tax Relief Scheme is discussed along with a proposal from one of our members, Five Lamps, to expand the service of CDFIs, utilising new initiatives such as community bonds.
The government has also set out clear distinctions and definitions between of social financiers and called for the need of capitalisation and expansion of the sector. The Big Society Bank, with an original capitalisiation of £200m from mainstream banks and initially, £60-£100m from unclaimed assets is also mentioned in the document. The bank will act as a wholesaler to capitialise intermediary social lenders, which currently includes, almost exclusively the community finance sector.
The Big Society Bank will operate independently of government. It will not make grants and it will be expected to make a sufficient return on its investment to cover its operating costs.
Download the document here