Oral Answers to Questions

Debate between Graham Allen and Nick Hurd

Wednesday 30th April 2014 Commons Chamber

[Mr Graham Allen (Nottingham North) (Lab)]

3. What progress his Department has made on developing social finance.

[The Minister for Civil Society (Mr Nick Hurd)]

I am proud that Britain leads the world in developing social investment. The hon. Gentleman is a tireless champion of its power to support early intervention. A new tax relief has gone live this month. There are now 15 social impact bonds in operation. I hope that he will welcome our announcement today of two more funds to support social impact bonds, which we believe will generate better outcomes for young people who are at risk of not being in education, employment or training.

[Mr Allen]

There is an important judgment from the European Court of Justice today on the Robin Hood tax, which will have a big influence on civil society and the big society. However, that will be minuscule compared with the potential impact of a serious social impact bond market on early intervention, which the Minister mentioned, and on council projects. It is two years since Big Society Capital was established, so is it not time to review the working of the Act that set it up to see whether we can take it further?

[Mr Hurd]

I am very proud of Big Society Capital as an institution. I have seen the impact that its investments are having on the ground. It has committed £149 million and has done important work to build this important market. It is just two years in and is about to publish its second annual report. We are always looking to ensure that it succeeds. I am more than happy to pass that question on to the Big Society Trust, which is its governing body, and get its response.

Oral Answers to Questions

Debate between Graham Allen and Nick Hurd

Wednesday 29th January 2014 Commons Chamber

[Mr Hurd]

The hon. Lady totally ignores the reason why there are cuts in the system, which is to get control of the deficit that we inherited. We passionately believe in the value of youth services for young people. That is why we have developed the National Citizen Service, which has an evidence base to support the value that it gives to young people. As I have said, we are now prepared to work with local authorities to see how they can commission, in an innovative way, really effective youth services in their area.

[Mr Graham Allen (Nottingham North) (Lab)]

4. What progress he has made on developing social finance.

[The Minister of State, Cabinet Office (Mr Nick Hurd)]

Britain is proud to lead the world in developing the emerging market of social investment. Big Society Capital has already committed £140 million, and the number of social impact bonds has risen sharply. Grants are flowing to help social entrepreneurs to become more investment-ready, and a new tax relief will go live in April.

[Mr Allen]

I refer to my entry in the Register of Members’ Financial Interests.

Having properly evidenced early-intervention programmes is the biggest known deficit reduction programme. In order for such programmes to start up, we need effective social finance. Will the Minister meet me to discuss what more his Department and, above all, Big Society Capital can do to maximise that possibility?

[Mr Hurd]

I congratulate the hon. Gentleman on his leadership in setting up the Early Intervention Foundation and on the work that it published today on domestic violence. He is entirely right that part of the value of social investment is its ability to create space to finance early intervention. That is where a lot of the social impact bonds that I mentioned are focused. I know from my conversations with Big Society Capital that it is very interested in engaging with What Works centres, including the Early Intervention Foundation. Following the hon. Gentleman’s question, I will write to the chief executive, asking him to update me on his engagement with the Early Intervention Foundation and other What Works centres.

Oral Answers to Questions

Debate between Graham Allen and Nick Hurd

Wednesday 9th June 2010 Commons Chamber

[Mr Graham Allen (Nottingham North) (Lab)]

13. Whether he has had recent discussions with third sector organisations on the financing of early intervention programmes; and if he will make a statement.

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

I salute the hon. Gentleman’s pioneering work in that area, and he will know that the voluntary and community sector can be a very helpful provider of early intervention services that reduce the drivers of demand on the state. I shall be in contact with my colleagues in all relevant Departments about any future policy developments on early intervention, and about how the Office for Civil Society can contribute.

[Mr Allen]

I welcome the Minister to his place. Will he meet me and a Treasury Minister to discuss how we can release the bonds on the voluntary and charitable sectors so that they can raise money in the City of London in order to pursue early intervention through social investment bonds? Will he agree to meet me?

[Mr Hurd]

I can certainly speak for myself and agree to meet the hon. Gentleman. He will know about the interesting work on social impact bonds, which bring in private capital for investment in early intervention and involve payment by results. That will be an important part of the future.