Big Society Capital: will it make a difference?
The government has unveiled a new financial institution, called ‘Big Society Capital’, to finance charities and community groups.
It will initially be funded by £400m from forgotten bank accounts and a further £200m from high street banks.
The Prime Minister said: "This is about supplying capital to help society expand. Just as finance from the City has been essential to help businesses grow and take on the world, so finance from the City is going to be essential to helping tackle our deepest social problems."
The bank will be run independently of the government and chaired by Sir Ronald Cohen. Cohen said: “What we’ve done for business entrepreneurs we must now do for social entrepreneurs,”
This is a major step towards the Conservative vision of a “big society”, but is it simply a cover for deep cuts in public services?