Supplementary memorandum submitted by
the Commission on Unclaimed Assets
This memorandum responds to the Treasury Committee's
concerns, and in particular those raised by George Mudie, from
the hearing on 5 June, of the inquiry into Unclaimed assets (Qq
248-251).[28]
From our research it is clear that the most
disadvantaged are regarded as "hard to reach" and are
often poorly served by both public and private sector services.
Third sector organisations, either those set up by people from
within disadvantaged communities, or those that provide services,
are often more successful in these areas, having both more credibility
and relevant products. These include community anchor organisations
that play a crucial role in supporting people back into work in
disadvantaged areas, and organisations such as TREES in the East
Midlands, a social enterprise that runs successful construction
and gas servicing businesses providing direct work opportunities
for the long-term unemployed.
The difficulty for many successful third sector
organisations is that they lack the investment to build for the
future and are reliant on short term revenue streams or insecure
grant funding. Our proposal of a Social Investment Bank is designed
to provide the necessary investment for such organisations. In
order to do so, we believe it vital, through appropriate incentives
to connect the third sector with mainstream finance and for social
investment to become a mainstream activity. The Social Investment
bank would be a small, entrepreneurial institution that would
combine skills from the social and financial sectors. By acting
as a wholesaler of capital to social investors including Community
Development Financial Institutions and Credit Unions, it can enhance
the capacity and penetration of present organisations and ensure
that they properly serve a much greater number of those most at
need.
We believe that such investment would help turn
the third sector into a much more powerful one, giving its organisations
the managerial and financial strength to attract many more people
into carers in social entrepreneurship. Not just the middle class
people Mr Mudie suggested, but also those from under-served communities
who feel emboldened to make a difference and who are, through
the Social Investment Bank, given the tools to do so.
June 2007
28 Ev 34-35. Back
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