Oral Answers to Questions

Mark Durkan Excerpts

Wednesday 2nd March 2011 Commons Chamber

[Mr Maude]

The big society bank will not make grants. It is a bank, so it will make loans and provide investment capital for this important and growing sector. One of the problems in the social investment market has been that Futurebuilders was able to give both grants and loans, which was very distorting for the large and growing number of intermediaries in that market. The bank should be an investment organisation, not a giver of grants.

[Mark Durkan (Foyle) (SDLP)]

What steps have been taken to ensure that the big society bank will be relevant and accessible in all regions? Also, is it being impressed upon the banks that the coming arrival of the big society bank will not obviate their duty to show consideration and support for the third sector in the current challenging funding environment?

[Mr Maude]

I am grateful to the hon. Gentleman for that relevant question. The introduction of the big society bank certainly does not obviate the broader need to support voluntary and social enterprises, in the interests of local residents. The bank’s remit will be UK-wide. The money put in by the banks will be for UK purposes, but the money coming into the big society bank in due course from dormant bank accounts will be for England only, unless the devolved Administrations decide to put their share of that money into the big society bank, which I hope they will be encouraged to do.