Hurd says Big Society Bank will be a wholesaler 4

Finance | Vibeka Mair | 14 Jul 2010

Minister for civil society Nick Hurd has said the Big Society Bank will be a wholesaler which will work through and support organisations that are already providing finance to the voluntary sector.

Hurd (pictured) made the announcement at a workshop organised by Information Exchange and UnLtd, after Charles Middleton, head of Triodos Bank, asked him what role the Big Society Bank would have.

Middleton told Civil Society that Hurd was "particularly at pains" to emphasise that the Big Society Bank would not be working in competition with Triodos, or other retail banks in the voluntary sector.

“He said it would be a wholesaler,” said Middleton, “Who would work through and support organisations that are already providing finance in the voluntary sector.”

The coalition government is aiming to have the Big Society Bank open for business by April next year.

Directory: Triodos Bank
Who's Who: Nick Hurd

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Gordon Hunter
Director
Lincs Community Foundation
15 Jul 2010

Wholesale banking would channel dormant cash to existing UK-wide providers of financial products to a sector that wants grants not loans.
Whereas BIG Society, ironically, aims to galvanise communities at a LOCAL level, stimulating LOCAL action and self help.
Hannah's right: there is less funding and more demand for services ... so the answer is to make the money more easily available at a LOCAL level.

[Reply]

Hannah Terrey
Head of Public Affairs and Policy
Charities Aid Foundation
14 Jul 2010

We have been calling for the Big Society Bank to be a wholesale bank for existing providers and this was one of the key points in our consultation response so we’re delighted that Nick Hurd has confirmed that this will be the case.

By working with existing independent intermediaries who are in it for the long-term such as Venturesome, the Big Society Bank can provide a lasting legacy, ensuring investment will be available to charities and social enterprises for years to come.

However, until the Bank is open, there will be charities seeking investment that will have been affected by the recent announcements that two of Social Investment Business’s government-backed funds have been suspended. This comes at a time when the Big Society agenda is offering charities and social enterprises a greater role in supporting communities. Alternative providers like Venturesome have funds available to invest at present, but given the likely demand additional funds cannot come into the social investment sector soon enough.

[Reply]

Andrew Pring
fit4funding
14 Jul 2010

Does that include the previously Government funded Social Enterprise Investment Fund?

[Reply]

Gordon HUNTER
Director
Lincs Community Foundation
14 Jul 2010

Nick should think again.
We all know that loan finance for charities doesn't work. Tridos, Charity Bank and the Social Investment Business have proved it.
Stick to the LOCAL agenda and devolve the money to County pots.
£1 billion worth of dormant accounts (mind you, it takes 18 months to persuade a bank to release one) means £17 million for Lincolnshire.
And we don't need another SIB-size quango staffed by 100 bankers with core costs in the millions.
Make it LOCAL, informed and cost-effective.

[Reply]

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