Labour has signalled that it will support Lord Phillips’ proposed social investment amendment to the Financial Services Bill.

During a Lords debate yesterday on the role of the voluntary sector and social enterprise, Labour and Co-operative peer Baroness Thornton said she hoped that Lord Phillips of Sudbury, will “explain to the House and give us a pre-run of the amendments” that he has indicated he will propose to the Financial Services Bill.

He reportedly intends to propose an amendment that will require the two new financial regulators created by the Bill to remove barriers to social investment.  But the wording of the amendment has not yet been disclosed.

Baroness Thornton added: “We will be interested in supporting them, because they are the heart of how we get social investment into the Financial Services Bill.”

Labour has already failed once to get social investment mentioned in the Bill. During its passage through the Commons, Chris Leslie MP, shadow financial secretary to the Treasury, proposed an amendment which would require the Financial Conduct Authority, one of the coming regulators, to actively promote social investment.

However, the proposals were narrowly defeated when eight Labour MPs who voted in support were defeated by 10 Tory and Liberal Democrat MPs.

Lord Phillips did not have an opportunity to speak again in yesterday’s debate to respond to Baroness Thonrton’s remark.

He is meeting with a number of stakeholders and interested parties today with a view to finalising the form of the amendment.
 
The amendment must be put down before the Committee Stage of the Bill, which starts on Tuesday 26 June 2012.