This strategy from the Cabinet Office explains the role of the Big Society Bank as a cornerstone of the social investment market attracting more investment from wealthy individuals, charitable foundations and ultimately socially responsible everyday savers in
social ISAs and pension funds.
It will ultimately be financed by an estimated £400million from dormant bank accounts, accessing up to £100million in its first year, as well as an additional £200million given by the UK’s largest banks. It will act as a wholesaler and use its balance sheet to co-invest, underwrite or guarantee investments along with private sources of capital.
The Big Society Bank will help economic growth by supporting Social ventures which already contribute to around 1.5% of GDP. In its strategy, the Government calls for the development of broader market infrastructure including piloting a social stock exchange and developing better measures to quantify the social value of investments made.
The three main strands of the Big Society are devolving power to citizens and communities, reforming public services and supporting social action. The Big Society Bank will help drive success across this agenda.
The strategy is published by the Cabinet Office and can be downloaded here.