Oral Answers to Questions

Lindsay Roy Excerpts

Wednesday 27th April 2011 Commons Chamber

[Mr Maude]

I am thrilled that the right hon. Lady is waiting for the document with such obvious excitement, and I can assure her that it will be well worth waiting for. This Government are committed to breaking up the old public sector monopolies and providing diversity, particularly with the growth of public service mutuals. The document will be published later this summer, and I can promise her that she will be delighted with it.

[Lindsay Roy (Glenrothes) (Lab)]

2. Whether private sector organisations will be able to make applications to the big society bank.

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

The big society bank will provide finance for the voluntary and community sector through funds to social lenders and investors. It will provide funds only to bodies that are onward lending or investing in the voluntary and community sector, charities and community groups.

[Lindsay Roy]

I thank the Minister for his response. In the light of that, can he please indicate how the bank will define social enterprise, as currently there is not a legal definition? How will he ensure that all social enterprises have access to funding but that no organisation that exists for private profit has such access?

[Mr Letwin]

Social enterprises can take a wide range of different forms, but the common feature is that they do not seek to make a profit for shareholders. I think there is a widely understood definition of voluntary and community sector groups, and the big society bank will be organised in such a way that it can identify those and make sure that the funds that it is providing to social investors and social lenders go only to those groups.