Social Enterprises and Community Ownership

Harriett Baldwin Excerpts

Wednesday 18th March 2026 Westminster Hall

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to serve under your chairmanship, Sir John. I, too, congratulate the hon. Member for Leigh and Atherton (Jo Platt) on securing this important debate.

I should declare that I was once on the board of the Social Investment Bank until 2012, and that my brother-in-law is chief executive of the Oversight Trust, which looks after all the dormant asset investments. I think I speak from a position of knowledge when I say how important social enterprises and community-owned organisations are. They are indeed some of the most dynamic, resilient and socially valuable parts of our economy. It was wonderful to hear so many examples from so many contributors in this debate—I will not list them all, but they were all very well described.

Social enterprise and community ownership lead to reinvestment of profits locally. They create local jobs and deliver services that strengthen communities—services that might not exist without them. These organisations are more likely to be led by women and, as we have heard, to be located in areas of higher deprivation.

I will indulge in this opportunity to mention some great examples in West Worcestershire. I think of two community-owned and volunteer-led shops: one in Alfrick, which I had the honour of opening, and another in Lower Broadheath, where I am on the record as a founding shareholder. We have the Brewers Arms in West Malvern, which is a wonderful community interest company pub. We also have some examples of organisations that used to belong to the county council, but now belong to the community. Two examples in Malvern are the Malvern Cube and Boundless Outdoors Malvern, and they are really thriving now as community assets.

As we can see from the House of Commons Library briefing, these organisations are often very much more trusted, much more responsive and more resilient than their commercial counterparts—but they do not operate in a vacuum. They need a stable economic environment, predictable costs, and a Government who understand the pressures that they face.

His Majesty’s official Opposition have repeatedly raised concerns, which we also heard from the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney), that recent Government decisions, including increases to national insurance, unresolved business rate pressures, and the impact of the Employment Rights Act on labour costs have created additional financial strain for social enterprises, which are already operating on tight margins. Many in the sector say that those pressures are forcing them to put up prices, scale back their services, delay their investment plans or abandon plans for community asset purchases altogether. What assessment have the Government made of how the recent increases in national insurance contributions are affecting the financial sustainability of social enterprises and community-owned organisations?

Business rates are one of the biggest barriers to survival for these organisations. The Government’s approach has left many organisations facing uncertainty and rising costs, so what steps is the Minister taking to ensure that business rates policy supports, rather than undermines, community ownership and social enterprise growth? Access to finance is also a persistent challenge, so what funding is available for social enterprises and community-owned assets, and what work is being done with the UK’s leading financial sector to address the barriers that social enterprises and community-owned organisations sometimes face?

These organisations are there, ready to deliver economic and social renewal, but they face many of the same challenges as other businesses across the UK. It is time for the Government to stop making life harder for businesses of all kinds. It is time for the Government to adopt the Conservative plans for a 100% business rate relief on retail, hospitality and leisure for the benefit of our high streets.