The government has announced the creation of the Office for the Impact Economy, which is designed to unlock billions of pounds in support for local communities by partnering with businesses, social investors, and philanthropists.
Based in the Cabinet Office, the new Office will act as a central point of contact, removing bureaucracy and making it easier for organisations and individuals to channel funding and expertise into projects that deliver meaningful social impact.
The impact economy, where businesses and investors use resources to drive positive change, is estimated to be worth £106 billion to the UK. Until now, its full potential has remained untapped. The Office will:
- Source and create partnerships, including investment opportunities, to scale up community improvements.
- Coordinate engagement across government departments, including DCMS, HM Treasury, the Office for Investment, and Devolved Governments.
- Build on initiatives like the £500 million Better Futures Fund, the world’s largest outcomes fund, which aims to support up to 200,000 children and families over the next decade.
Chief Secretary to the Prime Minister Darren Jones commented:
“Change comes as much from the ground up as from the top down. Community foundations invested in the council estate I grew up on, developing local organisations that anchored our community and provided the opportunities to help people like me to get on in life.
“Truly meaningful and long-lasting impact is created not from focussing on internal processes in Whitehall, but when government empowers communities – specifically those who know their local area, the people, the problems, and the opportunities inside and out.
“That’s why I set up the SIIAG last year when I was appointed Chief Secretary of the Treasury, to advise us on how better to work with people who want to direct their finance towards social good, to drive the change that government cannot deliver alone, and to ensure government investment was being properly co-ordinated with philanthropic and community-led social investment.
“So, I’m delighted that the Prime Minister has announced we will be acting on SIIAG’s advice to establish this new Office.”
The announcement follows the final report from the Social Impact Investment Advisory Group and comes just weeks after the Chancellor revealed a £2 billion impact investment commitment from Legal & General at the Regional Investment Summit. This funding will support projects such as affordable housing, regeneration, infrastructure, home retrofitting, and innovation hubs, delivering both financial returns and social benefits.
The Office will be designed in collaboration with key stakeholders in the impact economy to ensure it works effectively and delivers for communities nationwide.
Image credit: iStock
