05 April 2024 – Big Society Capital, Big Issue Invest and 34 other organisations have called for the next government to implement a series of proposals which would direct £ billions of private investment into driving growth and eliminating poverty across the UK.
In a letter published in the Financial Times, the 36 organisations call for the following urgent actions to provide more ways for private investors to use their capital for national good alongside taxpayer revenues.
- Launch a national growth fund, to attract pension capital and other institutional investment into critical sectors for the UK’s prosperity and well-being.
- Create a Local Community Growth Fund, to use current government spending to attract private investment into growth opportunities identified by communities across the UK.
- Introduce incentives which encourage investors, whether banks, pension funds or foundations, to invest for long-term sustainable and inclusive growth, including:
- revising its guidance on fiduciary duty, to allow and encourage institutional investors such as pension funds to direct more of their assets into inclusive growth opportunities across the UK.
- actively encouraging trusts and foundations to invest a percentage of their assets in investments to encourage long-term economic and social value as well as a financial return.
- Improve financial inclusion and access to fair banking by establishing a Financial Inclusion Taskforce,
- Spend smarter to mobilise private investment for more cost-effective delivery of public services for example to reduce NHS waiting lists.
Nigel Kershaw OBE, Chair of the Big Issue Group and co-founder of Big Issue Invest: “There are currently more than 13 million people living in poverty, 1 in 5 of the UK population. Of these, nearly 4 million are classed as ‘destitute,’ meaning they do not have access to basics like shelter, food, clothing, or toiletries. It is time for our next government to focus on prevention, in order to remedy this unacceptable and worsening situation through more private as well as public investment.”
Stephen Muers, Chief Executive of Big Society Capital: “The UK desperately needs more investment, which is chronically low compared to our competitors. There is a huge opportunity to channel more private as well as public money into investments which improve people’s lives across the UK and drive genuinely sustainable and inclusive growth, as well as delivering a financial return.”
Using calculations of institutional investment available, as well as the track record on specific projects Big Society Capital and Big Issue Invest have delivered over the last two decades, the measures proposed could mobilise up to £50bn of new private investment into driving growth in the first decade of a new government, increasing opportunity and tackling poverty.
Implementing these measures would not only grow the economy and save taxpayers money but would also benefit communities in multiple ways, including by creating thousands of jobs where they are most needed, preventing thousands of children from going into care and keeping families together, and helping hundreds of thousands of people at risk of developing long-term health conditions.
