Big Society Bank Briefing
The Big Society Bank concept
saw the bringing together of two ideas:
1.
the unclaimed assets/dormant accounts which
had been running for some time before relating to utilising the £200M - £2bn
(depending on who you believe) that banks held
2.
Wider issues around the Big Society including
seeing the social venture sector as a way of breaking current public sector
provision, diversifying providers of services and thereby empowering users of
services
Following earlier
announcements that there would be a Big Society Bank three more developments
have happened recently:
·
Growing
the Social Investment Market: A Vision and Strategy
setting out the ideas for the Bank in February 2011
·
The
Big Society Bank Outline Proposal setting out the practical
arrangements for the Bank in May 2011
·
The Bank has been renamed as the Big Society
Capital perhaps more clearly setting out its purpose with appointments made
to both Boards
These Boards include a Big
Society Trust acting as the ‘gatekeeper’ for the social mission of the Bank, an
operating company (Big Society Capital) employing about 40 staff doing the work
and a Charitable Foundation able to receive external grants and funding.
Its purpose is to act as
wholesale investor – investing in funds for front-line social ventures, funds
for intermediaries, and funds for new market vehicles and infrastructure. It is
not intended to be a direct grant giving agency. This is to address issues
social ventures (may) have in terms of accessing finance which hold them back
and means the Bank will operate more like a Venture Capital Fund. There will
also be an emphasis on acting as a hub for capital and support, and elements of
research, capacity building and best practice.
The funding will come from
two main sources:
·
About £400m in unclaimed assets likely to be
spread over 5 years
·
Probably £200m from the main banks in the
form of capital
However this is intended to
provide capital through equity and investment rather than direct funding or
grants to social ventures. In fact the Bank is expected to be self-financing
within 5 years, receiving sufficient return on its investments to cover its
operating costs.
The Bank will look ally
itself with other grant making institutions including the Big Lottery Fund (who
are minding the interim arrangements) and NESTA. For more detail there’s a
useful Urban
Forum briefing.
