Oral Answers to Questions

Debate between Anne Marie Morris and Oliver Letwin

Wednesday 15th June 2011 Commons Chamber

[Anne Marie Morris (Newton Abbot) (Con)]

11. What progress he has made on establishing a big society bank.

[The Minister of State, Cabinet Office (Mr Oliver Letwin)]

I am delighted to say that we are making extremely good progress in establishing the big society bank. Sir Ronald Cohen and Nick O’Donohoe, with whom I met recently, have put an outline of the proposals on the website. They are now working with the actuary and the administrators of the dormant accounts. So as not to waste time while we wait for state aid clearance, we have also established a high calibre interim investment committee in the Big Lottery Fund to begin work immediately.

[Mr Letwin]

My hon. Friend makes an extremely good point. It is tremendously important that the voluntary and charitable sector does not get into a debt spiral, and for that reason the big society bank’s plans involve trying to promote patient capital and risk capital that will allow the voluntary and community sector to expand without becoming over-geared and being put in financial peril.

[Anne Marie Morris]

Does the Minister agree that the big society bank will provide the vital backing required by investors in our social sector organisations, so that they can continue to support local groups dedicated to making communities better places to work and live?