Big Society Bank to open in April 2011

The first funds from the Big Society Bank should be available by April 2011, according to a cabinet office strategy released today.

The ‘strategy for structural reform’, which may be subject to changes after the autumn spending review, sets out a timeline that sees work begin on the Big Society Bank this month and the first funds available in April next year.

The bank, which was first proposed by the Labour government, would use money from dormant bank accounts and elsewhere to become wholesale provider of finance to social investors.

Speaking last week at the RBS SE100 Index awards night, minister for civil society Nick Hurd said that one of the things he was ‘most excited about’ was the Big Society Bank and making it easier for social businesses to get growth capital and patient capital.

The strategy also sets out a timeline for reform to public service procurement that would make it easier for the social enterprises and charities to work with the state. This is set to happen from January next year.

Public sector workers will also be given a new right to form employee-owned co-operatives. Cabinet office work on this is to begin immediately, but there is no time-line for its conclusion.