The Editor’s Post: Labour and the impact economy: ‘they get it’. Now what?
At the UK Labour Party’s annual conference, social entrepreneurs and impact investors are relieved by positive noises from the new government – but a lack of concrete action is worrying many. Laura Joffre reports from Liverpool.
Walking away from Albert Dock next to Liverpool’s exhibition centre after a day of meetings and events with social entrepreneurs and investors during the UK Labour Party's annual conference on Tuesday, it was hard to form one single conclusion from the dozens of conversations I’d had over the previous 12 hours, given how divergent people’s opinions of the new government were.
But there was one thing they all agreed on: the new government “gets it”. After years of disinterest from the most recent Conservative governments, everyone seemed to be relieved to see lawmakers actually demonstrate that they know what social enterprise and social investment are. “It's probably a better position that we’ve been in… for quite some time,” the former chair of Social Enterprise UK and longstanding supporter of the movement Baroness Glenys Thornton said at a panel discussion on Tuesday morning.
- Take a journey with Glenys Thornton in our Black Cab interview
It is notable that the government counts many champions of the impact economy among its ministers – and at a high level. Among others, the chief secretary to the Treasury, Darren Jones, has been very supportive of social enterprise during his time in opposition; Lisa Nandy, the secretary of state for culture, media and sport, has emerged as a big backer too. And at the trade department is Douglas Alexander, who was one of the first social enterprise ministers in the early 2000s under the Labour prime minister Tony Blair.
Cross-department cooperation
I’ve heard a lot of hope that social enterprise and social investment could be taken to a more “central” department, recognising them as powerful economic actors and not just a “nice to have” on the margins. They currently sit (with charities, youth, and also sport) in the portfolio of the civil society minister Stephanie Peacock, who I’m told isn’t quite on top of her brief yet, and by her own admission, is “quite new” to all of this.
Responsibility for the social economy is unlikely to be removed entirely from the Department for Culture, Media and Sport, but several people have heard about plans for cross-department cooperation. There are “live discussions” taking place about a partnership that would involve the Treasury, the Cabinet Office and DCMS, someone with close knowledge of the matter told me on Tuesday. This could look like a “unit” for the impact economy at the heart of government (similar to what Labour minister Stephen Timms asked for before the election).
That does not mean that it will happen, but given the many crises the UK government is dealing with at the moment, the sole fact that officials are taking the time to have those discussions shows that they’re taking the sector seriously, the same person said.
Where’s the detail?
But not everyone is entirely convinced, with little tangible evidence of this support beyond a few speeches. “I’m optimistic but I need a plan,” said a senior manager at a social investment firm.
Social entrepreneurs on the ground are frustrated at the lack of detail on policy – many appear sceptical – if not downright critical.
“A lot of the rhetoric aligns, but I do not think ministers recognise social enterprise as a driving force for that change,” I heard. “They’re still very much reliant on a more corporate, traditional vision of the private sector… I do not think they realise the potential of social enterprise… It’s still fringe, so they don’t enact the policies we need.”
Social Enterprise UK CEO Peter Holbrook said social enterprises could have a transformational role in areas where government and private sector were failing and where social enterprises perform particularly well – social care, education, housing and so on. “Warm words are welcome, but we’ve got to get into the nitty gritty of policy detail,” he added.
After much prodding, a minister privately admitted that they were aware that the government wasn’t doing enough, and that they “got the message”. Will we see the transformational shift many are hoping for? This government might have a five-year term to deliver it, but it needs to happen sooner rather than later if it is to leverage the full potential of the social economy to deliver on its pledges.
The Labour Party’s annual conference 2024 took place from 22 to 25 September in Liverpool.
Top image: Civil society minister Stephanie Peacock addresses a crowd of social investors and entrepreneurs at a reception organised by Better Society Capital, the Access Foundation for Social Investment, School for Social Entrepreneurs, Social Investment Business and Pathway Fund on 24 September in Liverpool.
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