Oral Answers to Questions

Debate between Albert Owen and Oliver Letwin

Wednesday 7th September 2011 Commons Chamber

[Mr Letwin]

My hon. Friend is a noted, effective and passionate advocate of his constituency. It is of course for Big Society Capital itself to decide exactly where it places its investment funds, but I have absolutely no doubt that it will want to prioritise social intermediaries who focus on those families who are most vulnerable, and on those individuals and families who are most in need of help.

[Albert Owen (Ynys Môn) (Lab)]

Community groups, including not-for-profit organisations, have difficulty establishing community projects because of the complexity of the system to secure funding. Will the big society bank have a dedicated officer to help and assist them, so that small projects in deprived communities have a level playing field?

[Mr Letwin]

The hon. Gentleman raises a very real problem, which Big Society Capital has recognised. Right from the beginning of the scheme’s design, Sir Ronald Cohen has insisted, and Ministers have agreed, that it should not directly invest in social enterprises but act as a provider of finance to social intermediaries—whether they are lending banks such as Triodos or other more exotic and interesting new social intermediaries—that already have a retail function and can deal, and know how to deal, with the small groups that need to deal with them.

Oral Answers to Questions

Debate between Albert Owen and Oliver Letwin

Wednesday 14th July 2010 Commons Chamber

[Mr Letwin]

I should say, Mr Speaker, that no one has previously accused me of having a mellifluous tone.

My hon. Friend is on to something enormously important. It is not just that we need to extend additional funding—it is much more than that. We need to involve the voluntary sector in a whole range of massive reform programmes. We hope to see it involved in schools, in the rehabilitation revolution, in the Work programme, in drug and alcohol rehabilitation and in much else besides. We are moving away from the micro-management of processes in contracts and towards a very exciting new world of payment by results, so that voluntary organisations can use their talents and initiative to achieve real results.

[Albert Owen (Ynys Môn) (Lab)]

One of the biggest barriers to volunteering and volunteer groups is taxation, not just the increase in VAT that was voted through last night but the level of taxation that volunteer drivers have to pay on their mileage. Will the Ministers please talk to HM Customs and the Chancellor about the increase in that taxation, in line with the petrol duty increase over the past decade?

[Mr Letwin]

The hon. Gentleman tempts me to do something that a ministerial career cannot long survive—speak for the Chancellor of the Exchequer on tax matters. I certainly undertake to continue the discussions with the Chancellor, which I have on all occasions, about how he can further our general programme to favour community groups in the voluntary sector. That is high on his agenda as well as ours.