Financial Times: Pathway On UK’s Social Capital Potential

Pathway has seen its open letter - calling on the UK’s policymakers to unlock the country’s social capital potential - published by the Financial Times. The letter was jointly signed by several sector leaders, including the Lord John Bird. Read it in full, below.

Last month, the FT Big Read reported on the fastest rise in the share of children in absolute poverty in the UK for 30 years — with 3.3mn children now living in households where it is a struggle to meet their basic needs for food, clothes or toiletries (March 18).

When the general election campaign starts, all parties will agree that it is a priority to generate economic growth in ways that remedy this unacceptable and worsening situation.

To achieve this, there must be more private as well as public investment, both of which are chronically low as a share of UK GDP. Building on our organisations’ track record in attracting investment into addressing the UK’s social challenges, while generating a financial return, we propose four measures to unlock more private investment across the UK.

First, we need more ways for private investors to deploy capital alongside government funds. We therefore support the launch of a national growth fund to attract institutional investment into critical sectors and places for the UK’s future prosperity. In tandem, we propose the creation of a local community growth fund to attract private investment into opportunities identified by communities across the UK.

Second, the government should introduce incentives to encourage investors, whether pension funds or foundations, to invest for growth in a way that is aligned with their charitable mission or members’ interests. These would include revising its guidance on fiduciary duty and encouraging trusts and foundations to invest a percentage of their assets in investments delivering economic and social value as well as a financial return. Third, we urge the government to improve access to fair banking by establishing a financial inclusion task force. Finally, government should spend smarter, using tested outcome models, to mobilise private investment for more cost-effective delivery of public services like healthcare.

Social investment has channelled £10bn of private capital into addressing the UK’s most pressing challenges since 2012. We believe that up to £50bn of additional private investment could be harnessed in the first decade of a new government, increasing opportunity and tackling poverty, as well as delivering savings to the taxpayer, giving everyone in the UK the opportunities they need to thrive.

• The Lord John Bird, Co-Founder and Editor in Chief, Big Issue;

• Robin Hindle Fisher, Chair, Big Society Capital;

• Stephen Bediako, Founder, Black Global Trust; Co-Founder Pathway Fund;

• Dame Julia Cleverdon, Chair, Place Matters;

• Daniela Barone Soares, CEO, Snowball Impact Investment;

• Mark Bickford, CEO, Social and Sustainable Capital;

• Jonathan Bland, Founder, E3M;

• Kieron Boyle, CEO, Impact Investing Institute;

• Daniel Brewer, CEO, Resonance;

• Conor Burke, CEO, Urgent Health UK;

• Bonnie Chiu, Managing Director, The Social Investment Consultancy;

• Amy Clarke, Co-founder, Tribe Impact Capital;

• Jon Coker General Partner & Founder, Eka Ventures;

• Tim Davies-Pugh CEO, Power to Change;

• Seb Elsworth, CEO, Access – The Foundation for Social Investment;

• Jean de Fougerolles, Managing Partner & Founder, Ascension;

• Arvinda Gohil, Chair, Future Economy Alliance;

• Ravi Gurumurthy, Group CEO, Nesta;

• Theodora Hadjimichael, CEO, Responsible Finance;

• Nigel Kershaw, Chair, Big Issue Group;

• Mila Lukic, CEO, Bridges Outcomes Partnerships;

• Paul Miller, Managing Partner and CEO, Bethnal Green Ventures;

• Stephen Muers, CEO, Big Society Capital;

• Dave Neilson, CEO, Fusion21;

• Mark Norbury, CEO, UnLtd;

• Kunle Olulode, Director, Voice4Change England;

• Ishita Ranjan, Project Director, Good Finance;

• Ed Rowberry, CEO, Bristol & Bath Regional Capital;

• Edward Siegel, CEO, Charity Bank;

• Mark Simms, CEO, P3 Charity;

• Matt Smith, CEO, Key Fund;

• Adam Swersky, CEO, Social Finance;

• Nick Temple, CEO, Social Investment Business

• Peter Udale, Chair, Responsible Finance;

• Danielle Walker-Palmour, Director, Friends Provident Foundation;

• Check Warner, Co-Founding Partner Ada Ventures; Co-Founder Diversity VC;

• Bevis Watts, CEO, Triodos Bank UK;

• Bethan Webber, CEO, Cwmpas; and

• Dilys Winterkorn, Director, Pathway Fund.