Social Finance welcomes the Chancellor’s renewed commitment to the social investment market and the consultation announcement on a new tax break for social enterprises. Evidence shows that tax incentives are key to motivating and unlocking investment. A recent report by the City of London estimated that £480m could flow into the social sector over five years from more than 225,000 households. David Hutchison, CEO of Social Finance, says that tax breaks “would level the playing field to allow social enterprises to offer the same tax advantages as for profit enterprises. Enhanced access to capital will enable them to deliver impact at greater scale and play a larger part in delivering public services”.
Social Finance believes that the simplest route would be to adjust current tax advantaged schemes to allow all regulated social sector organisations (e.g. charities, community benefit Industrial and Provident Societies and Community Interest Companies) with a range of activities and trades to benefit. We look forward to working on this initiative.
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