Coalition calls for use of dormant assets to grow local economies

A group comprising of charities, social investors and Social Enterprise UK have come together to get government backing on a plan to get enterprises in under served places.

A 12-week consultation on the use of dormant assets is set to take place this summer, as the group estimate that more than £880m could be released in funds for charities and social enterprises.

The Community Enterprise Growth Plan looks at the potential for growing businesses with a focus on social improvement, focusing on parts of the country which have been previously deprived of investment.

These include places identified by the multiple deprivation index and areas led or serving marginalised people, such as people from ethnic minority backgrounds and those facing or impairment or gender bias.

Peter Holbrook CBE, Chief Executive, Social Enterprise UK said: ‘This consultation marks a once-in-a-decade opportunity to decide how we use hundreds of millions of pounds to help communities. We must use this precious resource wisely.

‘Ultimately, we know that trading is the only route to lasting transformational change. The Community Enterprise Growth Plan is a smart way to deploy limited funds to support social enterprises in places that need them. I hope that the Government listens to the social enterprise sector and experts in backing this proposal.’

Plans concentrate on increasing access to private and philanthropic capital and dedicated funding to encourage a growth in trading and tailored business support.

Dormant assets, dormant monies from banks and building societies put towards good causes, could double the amount available to communities.

These would be used to help smaller charities and social enterprises to access finance through grants and loans in areas most needing investment.

The group has also taken on board recommendations from the Adebowale Commission for start-up funding to be given to a £50m Black-led social investment fund to tackle inequity in social investment.

There are also plans to support a network of non-profit lenders financing community businesses and projects unable to access mainstream lending and to provide business support and incentives for social enterprises to grow.

Photo by David Bayliss