Sector verdict: leaders' hopes and fears for the new coalition government

An opportunity with an air of caution seems to be the consensus in the social enterprise sector the day after a Tory/LibDem coalition was announced.

New PM David Cameron, with Nick Clegg by his side, has only been able to announce minimal detail of the UK’s new government and its policies.

What is known so far is that the coalition will go ahead with the Tories’ 2010/11 deficit cutting plans and the Lib Dems’ raising of the income tax threshold to £10,000. This means less cash in the public purse and has already resulted in a louder call for public service radicalisation from social enterprise leaders.

• Peter Holbrook, CEO of the Social Enterprise Coalition:

‘The reality of building a coalition government could very well result in delays in decision making regarding policies to support social enterprise. However, there is broad consensus across both the Conservative and Liberal Democrat parties about the positive role that social enterprises can play, particularly with regard to public service delivery.  
‘The Liberal Democrats have also demonstrated a broader vision of the role of social enterprise in terms of recognising its place in the wider economy, so we hope to see them bring that to bear in the new Government.
‘SEC will be building on our existing relationships with both parties to ensure that the momentum which built up in support of social enterprise during the election campaign is converted into tangible action.’

• Stephen Bubb, CEO of chief executives’ body Acevo:

‘Cameron’s reference to a strong society in his first speech as PM is reassuring, but what’s not clear is how they’re going to pursue cutting the deficit. We have to hope it’s through radical public service reform, which means more support for social enterprise and more experiment with the co-operative approach.

‘The LibDem policy on this is not spelled out so we’re going to have to work hard with them and the other parties. Where once we lobbied just the government, we’re now going to have to lobby all three parties, so it’s a heavy workload. Labour needs to rethink its position on the third sector because it had let it slip.

‘We hope to work closely with the coalition, but if their cuts start putting third sector organisations at risk, we will have to oppose them and we’ll use all the avenues we have.

‘The Big Society Bank is key and we need all the dormant bank account money for that. The Conservatives support that, whereas Labour only offered a pathetic £75m.’

• Antonia Swinson, CEO of the Scottish Social Enterprise Coalition:

‘The first Westminster coalition Government in 70 years is a big moment. Here in Scotland we've had two coalition terms of government so its joys and challenges are well rehearsed. Coalitions – as we see in social enterprise – can unlock real creativity so let's embrace it.

‘On both sides of the border, Conservatives and Liberal Democrats are staunch supporters of social enterprise and the Scottish coalition looks forward to working with them to ensure our movement can fulfil its potential as the engine  of social justice and sustainable business.’

• Nick Temple, policy and communications director, School for Social Entrepreneurs:

‘Firstly, social enterprise and social entrepreneurship are one area where this is significant crossover between the LibDems and the Conservatives. So it may well be a department where, once the internal processes have all been ironed out, policies can be implemented fairly soon. It is potentially a strength for the sector that the government will be seeking areas to make (joint) progress on.

'Secondly, with a LibDem minister in each department, I'm hopeful and excited about the possiblities for genuine partnership working. We are now in the unusual position of asking of government what they have often (rightly) asked of us: constructive partnership, putting aside more narrow self-interests, for the greater good and the greatest impact.

'Finally, we shouldn't overplay the importance of the national political situation. Many social entrepreneurs operate primarily at a local or community level, and their context will be most shaped by their local MP or local authority; and there was significant regional and local variation on display in the election results. Moreover, many social entrepreneurs are continuing to work in private sector partnerships, directly with consumers or in whichever is their relevant market, far from the corridors of Westminster.’

• Allison Ogden-Newton, CEO of Social Enterprise London:

‘I’m eternally optimistic and have already talked to some Conservative MPs, including Zac Goldsmith, who said he’d like to meet me to discuss social enterprise. Their Big Society policies lean them towards our world.

‘My first asks are talks about radicalisation in public services and better business support for areas of market failure, which should be delivered by a social enterprise, and I hope they think carefully about Futurebuilders [investment fund], which should be huge. There’s a place for private equity, but it shouldn’t replace the money [from Futurebuilders] and the way it operates.

‘The government also needs to choose a minister for us with experience rather than just enthusiasm as some of the ministers we had before didn’t have the high energy we need.

‘I’m concerned that people will want big results quickly and, although we can deliver big things, it’s imperative we create the right environment for this transformation, so they need to listen to us.’

• Di Cunliffe, policy officer at Social Firms UK:

‘Now that the Liberal Democrats and Conservatives have agreed to form a coalition we're a step nearer to knowing what the new opportunities for social enterprise and social firms will be. But we haven't yet reached the point where we can see them clearly.

‘It looks like the Conservatives will want to start to tackle the budget deficit this year rather than next. So we might expect early calls on the social enterprise sector to deliver more public services. We'll have to wait and see whether the LibDems’ proposals for a social enterprise bill survives what is likely to be a process of continuous negotiation on every aspect of policy.

‘Both parties appear to have agreed that employment for young people is a priority, while today's unemployment figures show that worklessness continues to increase and there are now 8.2 million people furthest from the labour market. So the need to invest in social firms and social enterprises to create jobs rather than leaving people to languish on benefits couldn't be clearer.’

• Lucy Findlay, CEO of Rise and MD of the Social Enterprise Mark Company:

‘Where are all the women in these talks? Women are traditionally good at co-operation and consensus building, although I though David Cameron’s speech last night signalled a start. I hope to see better representation of women in the new cabinet and in the jobs that matter to us.

‘Although social enterprise has cross party support, I worry that it will be used as a way of making cuts to public services, rather than as an alternative business model. I also worry about the regions as both parties are not fans of regional development – will we see an important layer of coherence lost?’

• Stuart Etherington, CEO of voluntary group umbrella body NCVO:

‘We have witnessed a significant change in the political landscape. It is now our responsibility to work effectively with this new coalition government. We particularly welcome the Prime Minister’s commitment to the Big Society he reiterated last night. We look forward to helping him refine that vision and clearly set out the role our organisations can play within it.

‘It will be imperative that our sector works together to create an environment in which voluntary organisations can thrive. For this reason, I have today invited sector leaders to a summit meeting to look at what the new government will mean for the people and communities we work with and for.
‘We recognise that these are difficult economic times and the government will have to make some tough decisions. However, it is important that spending plans recognise the role that VCOs play across many policy areas and that they are properly supported to play those roles, not because of who they are, but because of the real difference they make to the lives of individuals and communities.’

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