{"id":53547,"date":"2015-02-06T14:36:00","date_gmt":"2015-02-06T14:36:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=433e6ed91f7cbc62f7c980053a6b3b76"},"modified":"2015-03-25T14:10:17","modified_gmt":"2015-03-25T14:10:17","slug":"speech-oecd-social-impact-investment-report-rob-wilson-speech","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=53547","title":{"rendered":"Speech: OECD Social Impact Investment report: Rob Wilson speech"},"content":{"rendered":"<p><em>Updated:<\/em> Added video of the speech.<\/p>\n<div class=\"govspeak\">\n<p>It is great to be here with you today to launch this important <a rel=\"external\" href=\"http:\/\/www.oecd.org\/sti\/ind\/social-impact-investment.htm\">report on social investment.<\/a><\/p>\n<p>I want to begin by saying thank you and congratulations both to the <abbr title=\"Organisation for Economic Co-operation and Development\">OECD<\/abbr>, for putting this report together, and to all of you who have helped make it happen.<\/p>\n<p>I particularly want to thank Sir Ronald Cohen who has done so much to spur the growth of social investment, first in the UK and now on the global stage through the <a href=\"https:\/\/www.gov.uk\/government\/groups\/social-impact-investment-taskforce\">G8 Social Impact Investment Taskforce<\/a>.<\/p>\n<div class=\"call-to-action\">\n<p>Watch the Minister for Civil Society\u2019s speech below.<\/p>\n<\/div>\n<p><a rel=\"external\" href=\"https:\/\/youtu.be\/iD4Q4z5YoqU\">Watch the Minister for Civil Society\u2019s speech in full<\/a><\/p>\n<p>Now, you all know that here in the UK we think that by using innovative finance to support the growing social economy, <a href=\"https:\/\/www.gov.uk\/government\/collections\/social-investment\">social investment<\/a> can deliver economic growth, transform public service delivery and tackle some of society\u2019s toughest social issues. <\/p>\n<p>Social investment is not an answer to every problem, nor is it for every organisation, but it is important and it\u2019s here to stay. So rather than tell you what you know, I want to share 3 things with you: a story, an opportunity and a vision. <\/p>\n<ul>\n<li>first, I want to tell you a story about what this government has done to support social businesses and social investors and to create the world\u2019s most sophisticated social investment market<\/li>\n<li>second, I want to show you the opportunity that the social investment market presents for governments all over the world<\/li>\n<li>and third, I want to share our vision for the UK\u2019s role in leading a global social investment market<\/li>\n<\/ul>\n<h2 id=\"the-story-of-growing-the-uk-social-investment-market\">The story of growing the UK social investment market<\/h2>\n<p>First, the story.<\/p>\n<p>Over the past 5 years, this government has <a href=\"https:\/\/www.gov.uk\/government\/policies\/growing-the-social-investment-market\">grown the world\u2019s leading social investment market<\/a> and developed an ecosystem of support for social businesses and social investors alike.<\/p>\n<p>For social businesses \u2013 be they charities, community groups, or social enterprises \u2013 we\u2019ve provided the investment and expertise that new enterprises need to turn great ideas into real, scalable businesses. <\/p>\n<p>For example, our \u00a330 million Investment Readiness Programme included a <a href=\"https:\/\/www.gov.uk\/government\/news\/10-million-social-incubator-fund-launches\">\u00a310 million Social Incubator Fund<\/a> \u2013 a fund that has supported StudentFunder, a financial technology business with a social mission to remove financial barriers to education.<\/p>\n<p>What\u2019s more \u2013 our investment and contract readiness funds have unlocked a staggering \u00a325 of private investment for every \u00a31 of government grant. Which just goes to show how much interest there is in social businesses that have innovative approaches to tough social problems.<\/p>\n<p>And we have taken steps to ensure that this crucial grant support carries on for the long-term, by committing up to \u00a360 million to a new independent social investment charity we\u2019ve helped create called \u2018Access\u2019. Access will support charities and social enterprises to get the capacity-building grant programmes they need to grow sustainably. <\/p>\n<p>For social investors we created the <a href=\"https:\/\/www.gov.uk\/government\/collections\/social-investment-tax-relief\">social investment tax relief<\/a> \u2013 a groundbreaking tax relief that allows social investors to have a reduction in income tax for supporting causes that they care about. <\/p>\n<p>And we brought together \u00a3400 million from dormant bank accounts and \u00a3200 million from our largest high street banks to create the world\u2019s first social investment bank, <a href=\"https:\/\/www.gov.uk\/government\/policies\/promoting-social-action-encouraging-and-enabling-people-to-play-a-more-active-part-in-society\/supporting-pages\/big-society-capital--2\">Big Society Capital<\/a>, a bank that has:<\/p>\n<ul>\n<li>helped create over 30 intermediaries specialising in lending to social enterprises<\/li>\n<li>committed close to \u00a3180 million of investments<\/li>\n<li>already got over \u00a3100 million of investments out into the frontline, of which over \u00a360 millon of which has come from other co-investors, and, most importantly<\/li>\n<li>supported over 100 frontline ventures <\/li>\n<\/ul>\n<p>Together, these programmes \u2013 capacity building support, long-term institutions such as Access and Big Society Capital, and initiatives like the social investment tax relief \u2013 have built some of the most comprehensive government support for social investment in the world.<\/p>\n<p>In a new funding environment we\u2019ve used our money strategically, working in partnership with the sector, and I\u2019m proud of that.<\/p>\n<h2 id=\"the-opportunity-of-the-social-investment-market-for-governments\">The opportunity of the social investment market for governments<\/h2>\n<p>So, the opportunity.<\/p>\n<p>At the same time we\u2019ve been working externally to grow the social investment market, we\u2019ve been working internally within the public sector to make use of it. That\u2019s because we see social investment as an opportunity to transform delivery of public services.<\/p>\n<p>We all know that governments, here in the UK and in many other countries, don\u2019t have all the answers. We need new thinking, new ideas and new ways of ad dressing them.<\/p>\n<p>And that is where social businesses can help. They are the real experts. Many are innovative, on the frontline, working with their communities and so know what works and what doesn\u2019t and they are nimble enough to try new ideas and disrupt the status quo.<\/p>\n<p>So we need to buy from them. That\u2019s why the government introduced the groundbreaking <a href=\"https:\/\/www.gov.uk\/government\/publications\/social-value-act-information-and-resources\">Social Value Act<\/a>, enabling public sector officials to think about long-term social value to their communities when commissioning services.<\/p>\n<p>But I think we can go further. You will all be familiar with <a href=\"https:\/\/www.gov.uk\/social-impact-bonds\">social impact bonds<\/a> (<abbr title=\"social impact bonds\">SIBs<\/abbr>), a product which brings together social investors and social businesses to deliver government services on a pay-for-outcomes basis. <\/p>\n<p>Through social impact bonds we have developed a model which rewards successful innovation in the social sector, but where the taxpayer only pays for services that actually work. Already, in the UK, we have more social impact bonds that the rest of the world put together. I\u2019m proud of that.<\/p>\n<p>And, by publishing more than 600 unit costs of services to government, we\u2019ve created a new relationship where social businesses can bid in to government and say \u201cwe can prevent that issue for happening for less than it costs you to deal with the downstream consequences\u201d. <\/p>\n<p>That\u2019s better for the beneficiaries, better for society, better for social businesses and better for government.<\/p>\n<p>So we are working to fund further <abbr title=\"social impact bonds\">SIBs<\/abbr>. Last year, we announced a new <a href=\"https:\/\/www.gov.uk\/government\/news\/30m-to-improve-the-lives-of-vulnerable-young-people\">\u00a330 million package to help improve the prospects of at least 10,000 vulnerable young people<\/a> through social impact bonds. <\/p>\n<p>And we are now looking at other areas where <abbr title=\"social impact bonds\">SIBs<\/abbr> can help taxpayers money be even more effective. Areas such as health and social care hold huge potential.<\/p>\n<h2 id=\"our-vision-for-a-global-social-investment-market\">Our vision for a global social investment market<\/h2>\n<p>Finally, our vision.<\/p>\n<p>I\u2019ve told you the story of the steps we\u2019ve taken to make social investment a success in Britain and of the opportunity that the market presents for all governments.<\/p>\n<p>I now want to tell you about our vision for a global social investment market \u2013 a vision which drove our support for the G8 Taskforce and for this <abbr title=\"Organisation for Economic Co-operation and Development\">OECD<\/abbr> report.<\/p>\n<p>Markets grow through opportunities to meet, and through sharing information. <\/p>\n<p>That\u2019s why we supported initiatives like the <a rel=\"external\" href=\"http:\/\/gle.iipcollaborative.org\/\">Global Learning Exchange<\/a> and <a rel=\"external\" href=\"http:\/\/gsen.unltd.org.uk\/\">Global Social Entrepreneurs Network.<\/a> And that\u2019s why reports like this one from the <abbr title=\"Organisation for Economic Co-operation and Development\">OECD<\/abbr> today are so critical for our efforts.<\/p>\n<div class=\"call-to-action\">\n<p>Read the <abbr title=\"Organisation for Economic Co-operation and Development\">OECD<\/abbr> report: <a rel=\"external\" href=\"http:\/\/www.oecd.org\/sti\/ind\/social-impact-investment.htm\">Social Impact Investment: Building the Evidence Base.<\/a><\/p>\n<\/div>\n<p>I\u2019m not embarrassed to wave the flag, and say that we want to sell social investment across the world. We have the unique infrastructure to do so:<\/p>\n<ul>\n<li>we have one of the world\u2019s most evolved <a href=\"https:\/\/www.gov.uk\/government\/policies\/making-it-easier-to-set-up-and-run-a-charity-social-enterprise-or-voluntary-organisation\">social enterprise markets<\/a>, employing over 2 million people and contributing over \u00a355 billion to the economy each year; and<\/li>\n<li>the UK is rated number 1 in the world for social investment professional services and number 1 for a supportive policy and legal environment, and that\u2019s a mantle we don\u2019t want to lose<\/li>\n<\/ul>\n<p>These combined forces have produced exciting new deals that have commercial investors and social investors sitting around the same table.<\/p>\n<p>One example is the \u00a3300 million <a rel=\"external\" href=\"http:\/\/www.bigsocietycapital.com\/how-we-invest\/cheyne-social-property-impact-fund\">Cheyne Social Impact Property Fund<\/a> \u2013 a new fund, supported by Big Society Capital and managed by a leading hedge fund, that is dedicated to tackling the shortage of housing solutions for disadvantaged groups in the UK.<\/p>\n<p>And at the end of this month, we are launching a new government <a href=\"https:\/\/www.gov.uk\/britainisgreat\">GREAT campaign<\/a> to promote our social economy. <\/p>\n<p>As part of this we will be taking a group of our leading social economy professional services firms to New York on a trade mission, focused on ensuring that those deals continue to happen.<\/p>\n<h2 id=\"conclusion\">Conclusion<\/h2>\n<p>And so, to conclude; congratulations.<\/p>\n<p>This report is an important part of the story of building the social investment market. <\/p>\n<p>It will be a valuable resource for policymakers and researchers across the world who, like us, are committed to supporting social businesses and social investors. <\/p>\n<p>We all know there is further to go, and this report can help us map out where we need to direct our efforts next.<\/p>\n<p>Which is my challenge for your discussion today \u2013 not just to focus on what\u2019s been achieved to date, but rather to spot the new opportunities for the next stage of growth of this important market.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Minister for Civil Society Rob Wilson spoke about the UK social investment market, opportunities for government and the global vision.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/53547"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53547"}],"version-history":[{"count":1,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/53547\/revisions"}],"predecessor-version":[{"id":55819,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/53547\/revisions\/55819"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}