07 December 2018 - Article
The Government plans to introduce an endowment fund of £100 million to help charities and social enterprises attract social investment and compete successfully for public service contracts.
The Government has announced that up to £60 million of the £100 million fund will come from the repayment of loans made by the Futurebuilders Fund which was established by the Labour Government that is no longer in operation.
The balance of the new fund is likely to come from contributions from the Big Lottery Fund and from Big Society Capital. While a decision has been made in principle, the proportion of the remaining £40 million that each will contribute has not been formally settled.
The Big Lottery Fund has been working with the Cabinet Office and Big Society Capital to improve support for small organisations wishing to take up social investment opportunities.
The Minister for Civil Society, Rob Wilson, has said that this new fund is part of a series of flexible finance and support options that he is trying to put in place for the benefit of organisations of different sizes and types that require help.
Formal decisions on the endowment fund were said to be expected early in 2015. The Chancellor’s Budget 2015 touched upon social investment by announcing that a future Finance Bill will include amendments to tax relief on investment in Social Venture Capital Trusts.