Dormant Assets Bill [Lords]

Rushanara Ali Excerpts

2nd reading
Monday 6th December 2021 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

May I start by declaring an interest as co-chair of the all-party parliamentary group on philanthropy and social investment and also chair of a national charity that has benefited from dormant assets funding, as well as the many organisations that the all-party group represents?

Since the last Labour Government introduced the Dormant Bank and Building Society Accounts Act 2008, with cross-party support, more than £800 million has been distributed to good causes. The four organisations that have been involved with the distribution—Big Society Capital, Fair4All Finance, Youth Futures Foundation and Access, the Foundation for Social Investment—have a proven track record and an evidence-based approach to investment and support to charities and social enterprises across the country.

It is vital that this Bill builds on the work and the evidence underpinning the allocation of funding. It is also vital that we look at some of the things that these organisations have achieved. Big Society Capital alone has used the £425 million of dormant assets to bring in another additional £2.5 billion of social investment from other investors, so it is vital that we ensure that that is built on and that there is not a power grab by Ministers to allocate funding to their favoured causes. I hope that the Minister will assure us that the consultation will be meaningful and not an attempt to take away the proper accountability, scrutiny and good governance that underpins the current allocation of funding, through these agencies, to good causes in our constituencies up and down the country.

Since 2019, the Youth Futures Foundation, which has a fund of £90 million, has started to allocate funding to young people. I have seen how the charity that I chair has benefited; 70% of the beneficiaries are from working-class and ethnic minority backgrounds in different parts of the country. Many other organisations up and down the country are also doing really great work with young people. Youth Futures Foundation has distributed nearly £19 million to 143 civil society organisations engaging about 18,000 people during the pandemic, and there is much more to do for those who face disadvantage and discrimination. As I have said, the work of Big Society Capital has meant that organisations have been able to build a social economy in their areas, which has had benefits in a wide range of fields such as tackling homelessness and building new social businesses across the country.

Let us build on the achievements reached under the last Labour Government and the cross-party consensus that has underpinned the work of these multiple organisations. I hope that the Government will ensure that lessons are learnt from the scandal of the towns fund. There have been big concerns about funding being allocated when Ministers have more control over it and there is less accountability; funding must not be dictated by political favouritism. Likewise, we hear the scandals of the personal protective equipment contracts, with separate pathways for those who have close connections with the ruling party. We must ensure that we do not fall into those traps, because there is a great deal of cross-party consensus on supporting organisations in our constituencies up and down the country.

During the pandemic, we have seen how vital it is to support charities. I have been fortunate to be able to work with colleagues in the Conservative party, as well as Liberal Democrats, SNP Members and others, through my all-party parliamentary group. I hope that Ministers will take heed of the representation that has been made and ensure that, rather than the duty to consult just being paid lip service to, there is proper protection and good governance in the future allocation of the dormant assets funds, and that they do not just dish out money to their pet causes, dictated by political considerations rather than what is in the interests of community organisations and charities across our constituencies and our country.

[Several hon. Members rose—]