Charitable and Voluntary Sector

Baroness Thornton Excerpts

Thursday 30th April 2020 Lords Chamber

[Baroness Thornton (Lab)]

My Lords, I declare an interest as patron of Social Enterprise UK and as a senior associate of Social Business International. I thank the noble Lord, Lord Addington, for the opportunity to take part in this important debate. I will raise a series of questions about social enterprises, mutuals and social businesses, because these are DCMS’s responsibility at the moment, as the Minister will know.

I am very concerned that this growing sector of our economy is falling between the provisions to support businesses and the provisions to support charities and the third sector. It is therefore in jeopardy. I briefly remind noble Lords that this sector is bigger than agriculture; it makes a £60 billion contribution to the UK economy and employs 2 million people. It is estimated that 50% of social enterprises are at risk of running out of cash by June. That could risk 1 million jobs.

If the Minister cannot address the questions that I am about to ask, I would be very happy for her to write to me. First, social enterprise business leaders have said that 1 million jobs are potentially at risk due to gaps in existing government support measures, and they have put forward a plan of action. Will the Government act on their recommendations and extend business grants and improve access to finance to save tens of thousands of social enterprises?

Secondly, can the Government explain why business grants have been provided to massage parlours, betting shops and casinos, but social enterprises employing vulnerable people or working in the most deprived communities are not getting access to these cash grants?

Thirdly, the Government have promised £330 billion in loan guarantees, but social enterprises, like other businesses, are struggling to access them. What are the Government going to do to develop tailored financial support for social enterprises within the social investment market?

Fourthly, social enterprises are reporting that they are not getting business grants due to eligibility restrictions, but some businesses that possibly have questionable value are being given grants. Can the Minister explain what criteria the Government are using to measure the social value of businesses when deciding which organisations get support?

Finally, social enterprises are delivering front-line public services on behalf of the state, but many are reporting not getting access to emergency funding for PPE, additional equipment and staffing costs. Will the Government ensure that social enterprises and charities delivering front-line public services can access the unlimited emergency funding that the state is providing to statutory bodies?