Cabinet Office Questions
14th December 2011
Nick Hurd answers questions from back bench MPs on Big Society Capital, supporting the voluntary sector and the National Citizens Service.
Big Society Capital
Richard Fuller (Bedford) (Con): What recent progress he has made in establishing Big Society Capital.[86423]
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd): Big Society Capital is all about trying to make it easier for social entrepreneurs to access capital. We think that we are making good progress, moving swiftly through the Financial Services Authority authorisation and EU state-aid approval processes, and we are confident that Big Society Capital will be open for business by spring. In the meantime, the interim investment committee, which made its first investment in July, will announce its next investment shortly.
Richard Fuller: I thank the Minister for his answer. My focus is on the voluntary organisations whose budgets are always tight, so will he advise me on how he can enhance their capacity to take advantage of the opportunities afforded by Big Society Capital?
Mr Hurd: My hon. Friend knows from his lengthy experience in the area that we have fantastic social entrepreneurs in this country, and we want to make it easier for them to access capital, but, as he points out, some of them need more help to become more investment-ready. That is exactly why we have set up a £10 million investment and contract readiness fund—to provide grants for organisations that want to attract investment but know they need more help to become more investment-ready.
Mr Gareth Thomas (Harrow West) (Lab/Co-op): Among the Public Administration Committee’s many criticisms in its report today, it rightly highlights that Ministers cannot expect the big society bank to provide the solution to the funding crisis that their cuts are causing for hundreds of charities. Given that the report goes on effectively to accuse Ministers of being out of touch and not providing effective leadership to tackle the problems that charities face, would not now be the perfect time for yet another one of the Prime Minister’s big society re-launches?
Mr Hurd: I am not going to take any lectures on leadership and Big Society Capital from the Opposition, because they talked for 10 years about setting it up but did not actually do it. We are doing it because we want to make it easier for social entrepreneurs to access capital. It is on track, and we are very proud of it.
Voluntary Sector
Julie Hilling (Bolton West) (Lab): What steps he is taking to support the voluntary sector. [86431]
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd): We are supporting the sector through this difficult time by cutting red tape, investing in transition funds for infrastructure and front-line organisations, creating significant new opportunities for the sector to deliver public services, and supporting new initiatives to encourage giving and social investment.
Julie Hilling: The Roots project in Westhoughton in my constituency has been praised by the Government as a beacon of the big society, but Liz Douglas, the founder, has had no wages for six months. Words are no good. When will the Minister take action to support the voluntary and community sector?
Mr Hurd: The hon. Lady knows that we have taken a great deal of action, not least by putting in place a £107 million transition fund to help the most vulnerable organisations. If she is talking about cuts being made locally by Bolton council, she will know that the reduction in its spending this year was only 7%. The questions that she has to ask Bolton council are: “Why were you so badly prepared for this situation?” and: “Why did you block a proposal from Conservative councillors to create a fund to support local voluntary organisations?”
Topical Questions
Graham Evans (Weaver Vale) (Con): The national citizens service is an excellent initiative to help young people to develop the skills and attitudes that they need in order to become responsible citizens. Can the Minister tell me what local branches of the service will be available to them in my constituency?
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd): I will write to all Members shortly to tell them which providers of the service are operating in their local authority areas, but I can confirm that providers will be working in Cheshire East and in Cheshire West and Chester next year. I strongly encourage all Members to become involved with this programme, which provides a fantastic opportunity for young people.
