Social Economy

Debate between Brooks Newmark and Hazel Blears

Tuesday 2nd September 2014 Westminster Hall

[Mr Newmark]

The hon. Lady represents Newcastle, which is the home of my football team, so she can do little wrong in terms of representing that exciting city—it is second only to Braintree, of course.

I also pay tribute to the right hon. Member for Salford and Eccles for her support of Big Society Capital through her role on its advisory board and her regular public appearances, as well as for her support for mutuals. Such contributions have been invaluable to a growing economy that includes organisations, entrepreneurs, innovators and investors who are committed to supporting positive social change.

I am grateful for the bipartisan approach to this issue and to the right hon. Lady for regularly reminding us how this work transcends party differences. It is about supporting those charities and enterprises who work tirelessly to improve people’s lives and communities. Members of all parties have the same agenda: we want to improve people’s lives, and the voluntary and charitable sector leads on that objective.

I think the right hon. Lady said that medium-sized social enterprises employ more than 1 million people; in fact, they employ 2 million people and contribute more than £55 billion to the UK economy each year—an enormous amount. The UK already has one of the most developed social investment sectors in the world and it is growing all the time. A few weeks ago, I visited the Repair Academy in Wiltshire, which transforms unwanted household goods into marketable, new products: upcycling as well us recycling. It is not only doing that to make a quick buck; it is equipping the young people who work for it with the skills they need for the world of work and working to change public attitudes to waste and recycling.

So yes, there is a business mentality, but it is also about public and social good. Too often, we think of those things as being mutually exclusive; allied together, they can be a truly powerful force, strengthening communities and changing lives, developing new solutions to seemingly intractable social problems and transforming the way we deliver public services to this country.

The right hon. Lady also mentioned three other great examples, including Place2Be and—was it Born Back?

[Hazel Blears]

Bounce Back.

[Mr Newmark]

Bounce Back, which I thought was a great idea. The qualification is that someone goes to prison, but there are people there who want to change their lives and help them transform back into the community. Bounce Back seems a great example of that.

For all those reasons, the Government have made it our mission to help strengthen Britain’s social economy. Just like any other business, social businesses need access to long-term capital. For years, charities and social enterprises had been telling successive Governments how hard it was to find affordable and sustainable finance. We listened to them and helped establish Big Society Capital, the world’s first full-blown social investment institution. Much credit is due to my ministerial predecessor, my hon. Friend the Member for Ruislip, Northwood and Pinner. People had talked about a social investment bank for the best part of two decades, and his leadership in Government made it a reality in less than two years. He made an excellent point in mentioning the discussions on having a collaborative approach between business and government, in terms of developing the social economy to unlock social innovation.

[Hazel Blears]

A lot has been said about collaboration, and I agree entirely with the previous Minister, the hon. Member for Ruislip, Northwood and Pinner (Mr Hurd), that government needs to change. I suggested interdependent budgets for Cabinet Ministers when I was in the Cabinet and I believe that there is some interest in that issue now.

However, I should say to this Minister that I am seeing the Health Minister, the right hon. Member for North Norfolk (Norman Lamb) with my social enterprise, Social adVentures, on the issue of dementia care. Collaboration between Ministers is essential. Perhaps this Minister could add his weight to some of our proposals with his colleagues across Government.