Government to partner with businesses, social investors in the UK

Initiative aimed at unlocking billions of so-called impact capital.

Britain's government will be partnering with businesses, social investors, and philanthropists to help tap the full potential of what is known as the impact economy.

Estimated to be worth $139.4b (£106b) to the UK, the impact economy involves driving positive results in local communities by using the expertise and resources of philanthropists, businesses, and social investors.

To make it easier to give back to communities, the UK has set up the Office for the Impact Economy to be led by the Chief Secretary to the Prime Minister. The goal is to source and create partnerships that will boost the impact of public investment in community improvements.

"By partnering with impact investors, philanthropists, and purpose-driven businesses, we can unlock transformational opportunities for communities across the country," said Culture Secretary Lisa Nandy, who believes barriers to opportunity can be broken down by working together.

Based in the Cabinet Office, the Office for the Impact Economy will serve as a central point of contact for organisations and individuals who want to direct their finance towards social good by supporting local people and communities.

"Truly meaningful and long-lasting impact is created not from focussing on internal processes in Whitehall, but when government empowers communities – specifically those who know their local area, the people, the problems, and the opportunities inside and out," commented Darren Jones, Chief Secretary to the Prime Minister.

Jones shared: "Community foundations invested in the council estate I grew up on, developing local organisations that anchored our community and provided the opportunities to help people like me to get on in life."

The Office for Investment's dedicated impact capital function will be working with the Office for the Impact Economy. Government departments will also collaborate in coordinating engagement with the UK's impact economy.