Agenda item

A report of the Chief Grants Officer (copy attached).  

The Board considered a report of the Chief Grants Officer on the progress made in allocating monies from the social investment fund during its first year. During the course of discussion the following points were made:

The Chairman noted the comment in paragraph 8 of the report stated that social investment in the UK at present was characterised by an ‘overemphasis’ on the financial, as opposed to social, return from capital invested. He said that such a characterisation did not fully represent the approach of the Social Investment Board nor that of Social Investment generally. He stated that it was essential that prudent investments were made with as near certain (as possible) ‘exits’ so that the reputation of the nascent social investment market as a whole, would not be tarnished by failing investments. Accordingly it was important for the Board to strike the right balance between obtaining a financial and social return from the capital it invested.

Furthermore he noted with interest the prediction that there would be a demand for £1billion of social investment over the next five years.

There was a discussion regarding the running costs for the City Corporation’s Social Investment Fund and it was noted that they were comparatively modest compared to the private sector. In response to a question from a Member, the Chief Grants Officer said that social investment currently occupied circa 3.5 days per week of officer time but that this was expected to increase as the work of the Board became more established and the volume of investments increased. He noted that his team would be liaising with colleagues in the Economic Development Office over the resource needs to deliver social investment work, and  a business case for additional resources would be jointly submitted to the Policy and Resources Committee.

RESOLVED:-

·         That the report be received and its contents noted;

·         That officers prepare a report for the Court of Common Council on the first year of the social investment fund’s operation and the Corporation’s policy work on social investment.