Government will partner with businesses, social investors and philanthropists to unlock billions of pounds worth of support for local people and communities and support national renewal.
- The new Office will partner with investors, philanthropists and businesses to unlock billions of impact capital and to support national renewal.
- Led by the Chief Secretary to the Prime Minister, the Office will partner with investors, philanthropists and businesses to help government investment go further and improve people's lives across the UK.
- Plans launched by the Prime Minister with businesses, social investors, philanthropists, local leaders and charities at No10 Downing Street.
Government will partner with businesses, social investors and philanthropists to unlock billions of pounds worth of support for local people and communities and support national renewal.
A new Office for the Impact Economy based in the Cabinet Office will provide a central point of contact for organisations and individuals getting rid of the current bureaucracy they need to navigate.
The impact economy - where businesses, social investors and philanthropists use their expertise, resources and investment to drive positive results in communities - is estimated to be worth £106 billion to the UK. But until now, its full potential has been untapped. The Office will make it easier for anyone looking to give back to their communities to get funding and action into the right place. at the right time.
The Office will work to source and create partnerships, including investment opportunities, for those who want to help, in order to "scale up" the impact of public investment in community improvements and developing opportunities for communities across the country.
The launch comes as a direct response to the final report from the Social Impact Investment Advisory Group (SIIAG) just a week after it was published.
The SIIAG was set up by the Chief Secretary to the Prime Minister during his time at the Treasury and the DCMS Secretary of State, Lisa Nandy, to ensure the government has the infrastructure it needs to properly harness the power of investors, philanthropists and business.
Darren Jones, Chief Secretary to the Prime Minister, said:
Change comes as much from the ground up as from the top down. Community foundations invested in the council estate I grew up on, developing local organisations that anchored our community and provided the opportunities to help people like me to get on in life. Truly meaningful and long lasting impact is created not from focussing on internal processes in Whitehall, but when government empowers communities - specifically those who know their local area, the people, the problems and the opportunities inside and out.
That's why I set up the SIIAG last year when I was appointed Chief Secretary of the Treasury, to advise us on how better to work with people who want to direct their finance towards social good, to drive the change that government cannot deliver alone, and to ensure government investment was being properly co-ordinated with philanthropic and community-led social investment. So I'm delighted that the Prime Minister has announced we will be acting on SIIAG's advice to establish this new Office.
The Cabinet Office team will work alongside the Department for Culture, Media and Sport, HM Treasury, the No10 Partnerships Unit, the Office for Investment, Devolved Governments and the Department for Business and Trade, to coordinate engagement with the impact economy across the entire UK.
As part of this, the Office will partner with the Office for Investment's dedicated impact capital function, which works with large pools of capital.
Culture Secretary Lisa Nandy said:
By partnering with impact investors, philanthropists and purpose driven businesses, we can unlock transformational opportunities for communities across the country.
This is something I fundamentally believe in - that everyone in our communities, regardless of their background or postcode, deserves the chance to reach their full potential.
Working together, we can break down barriers to opportunity and ensure nobody is left behind."
Chief Secretary to the Treasury James Murray said:
This Office will drive growth and support national renewal.
I know the potential of the social impact sector has long been untapped, and I welcome the commitment and willingness to work in partnership with businesses, impact investors and philanthropists who have been involved so far.
I look forward to working with colleagues across government to unlock billions of pounds worth of investment to better support communities.
The Office will work across government to support and champion government investment, building on the £500 million Better Futures Fund, set up by the Chief Secretary to the Prime Minister during his time at Treasury. The BFF is the world's largest outcomes fund which will support up to 200,000 children and their families over the next ten years.
At the Regional Investment Summit last month, the Chancellor announced a £2 billion impact investment commitment from Legal & General - a clear signal of the UK's potential to attract major private capital for sustainable and inclusive growth. This funding will support vital community projects including affordable housing, regeneration, infrastructure, home retrofitting, and innovation hubs, delivering both strong financial returns and meaningful social impact.
The Office will be designed in collaboration with key organisations in the impact economy over the coming months, to ensure it works for stakeholders and delivers for communities.
Dame Elizabeth Corley DBE, Chair of the Social Impact Investment Advisory Group, said:
Today's announcement is a welcome step by the Government towards fulfilling the opportunities for shared impact laid out in our recent report. The formation of an Office for the Impact Economy creates a focal point for new partnerships, and a hub for the capability building and behavioural change needed across government to mobilise the full creative and capital resources of the impact economy in support of national renewal. Members of the Social Impact Investment Advisory Group look forward to working with the new Office team to mobilise investment and expertise into the areas of greatest need.
