Big Society fund launches

by Aaron Strutt

Apr 05 2012

The UK government has launched a new financial institution to finance charities and community groups.

Big Society Capital has £600m and this will help many companies in need. The majority of the funding is coming from cash in dormant banks accounts that have not been touched for more than 15 years.

The fund will back social enterprises that prove they can repay investment through the income they generate, although there has been a mixed response to the idea.

Prime Minister David Cameron is quoted on the BBC saying: “This is about supplying capital to help society expand. Just as finance from the City has been essential to help business grow and take on the world, so finance from the City is going to be essential to tackle our deepest social problems.

Jon Trickett, Labours Shadow Minister for the Cabinet office, was not quite as positive about the new funds. He said: “Charities need all the support they can get. This announcement is welcome, but is too little, far too late.

“The Government should not over claim at a time when over 70,000 jobs in the sector have been lost in the last year alone. Too many charities are cutting back on the support they provide to individuals and communities as a result of the Tory-let Government's cuts that go too far, too fast.”

April 4, 2012