BUDGET DAY: Social investment bank gets OTS consultation

An investment bank for social enterprises came a step closer today after Chancellor Alistair Darling unveiled plans for the Office of the Third Sector (OTS) to undertake a consultation on its ‘design and function' in his Budget.

The eagerly awaited Social Investment Wholesale Bank (SIB), which was first championed by Sir Ronald Cohen's commission set up to consider how to invest unclaimed assets in dormant bank accounts, would increase the supply of finance to social enterprises and third sector organisations.

The Budget report, unveiled by the Chancellor, said: ‘To support the long-term growth of a thriving third sector, the government will consult on the design and function of a social investment wholesale bank. The Office of the Third Sector will report back with substantive proposals.'

A spokesman for the OTS said: ‘The government has always expressed its interest and support for some kind of social investment vehicle. The consultation launched today is the next step to establishing how an investment bank as outlined in the Social Enterprise Action Plan could actually work.

'The fact the idea has now made it into the Budget clearly shows how interested the government is in seeing how a wholesale bank could sit alongside other initiatives we're working on including a social stock exchange, SROI [social return on investment] and risk capital.'

He added the consultation would consider different ways to raise funding for a bank, stating that using unclaimed assets in dormant bank and building societies was just one of several options.

Further details about the consultation, including details about when the findings would be published, would be released shortly, he added.