GOOD DEALS 09: Government backs social investment to unlock potential of third sector

The government is keen to develop the social finance sector to unlock the potential of third sector organisations.

Speaking this morning at the UK social investment conference Good Deals 09, minister for the third sector Angela Smith said the government was extremely interested in developing the social finance sector because this would 'be the key to unlocking the potential' of third sector organisations.

The third sector could help to shape the 'public services of the future,' she said.

Speaking to an audience of social enterprises, other third sector organisations and social investors, she said: 'We think you can improve public services, get better value for money and demonstrate how existing models can improve.'

Smith added that the government's role was to 'crowd in' social finance, not 'crowd it out'.

The possibility that the government's leading role in social finance could act as a disincentive to other investors was a concern that had arisen during the government's consultation on the social investment wholesale bank, which closed at the start of October.

Smith added that the government wanted to 'proceed pretty quickly' with the social investment wholesale bank.