Social Enterprise

Debate between Lord Ashton of Hyde and Lord Bird

Tuesday 10th January 2017 Lords Chamber

[Lord Bird]

To ask Her Majesty’s Government what assessment they have made of the value of social enterprise to the United Kingdom economy.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, this Government have a long history of supporting social enterprises as part of building an economy that works for everyone. Social Enterprise UK estimates that there are 70,000 social enterprises in the UK, contributing £24 billion, gross value added, and employing nearly 1 million people. Just under one-third of social enterprises work in the most deprived communities in the country, and 59% employ at least one person who is disadvantaged in the labour market. We are currently refreshing our own government estimates of the nature and size of the social enterprise market in the UK, and we will publish our research early in 2017.

[Lord Bird (CB)]

Thank you, my Lord. I was very pleased to hear in the speech yesterday by the Prime Minister on the sharing society that she mentioned social enterprise on 10 occasions—so it looks as though we are in for a bean feast in the future of social enterprise. Unfortunately, the whole system is moving rather slowly. If you carry on at this rate, somewhere towards the end of this century we might be able to have a social enterprise industry that actually gets to the parts of society that big business cannot get to. Is it possible maybe to imitate the Scottish Government’s idea of having a 10-year strategy to look at ways in which to do social enterprise in every conceivable way? I myself look forward to the day when they can offer me a prison, because I would love to run one and I would do it better than Group 4.

[Lord Ashton of Hyde]

Well, I know that the noble Lord has experience, and I would be interested to see him one day when he is doing that. As for social enterprise, we are strengthening it—and we are doing a lot to do that, including the Chancellor, who has increased the social investment tax allowance. I do not think that you can say that it is moving slowly when 1 million people work for social enterprises.