Recent Policy Developments in UK Roger Spear OU/RUC Chair Co-ops Research Unit & ICA RC 6yrs Founder member of EMES network Joint Coordinator of Third System in Europe Project EMES Network Projects and Book See Social entrepreneurship projects

Recent Policy Developments in UK Brief review of previous policy – 3 themes in SE strategy – System of co-governance New Coalition Government – Context: crisis and turbulence from cuts/restructuring; – Some rebranding – Big Society theme (not wholly supported) – Some current themes and issues

Social enterprises in UK 2005: 15,000 social enterprises in the UK; Total turnover £18bn. Workforce of 775,000 people including 300,000 volunteers. Ref. Small Business Service (IFF) Survey 2005 (>25% earned; CLG + IPS) 2006: 55,000 social enterprise; 1% of new business had a social enterprise reason for starting. around 4.8% of all business with employees; combined turnover over £27bn. £8.4bn contributed p.a. to GVA, 0.85% of total GDP. Annual Survey of Small Businesses Survey 06 (>75% earned; all legal forms) Since increased to: 62,000 ( ASBS); same T/O.

Social Enterprise - UK Social enterprise = enterprise part of third sector Brings different focus on that field (NCVO) OCS: Social enterprises are defined as “businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for shareholders and owners” Growing part of Third Sector (restructuring of existing organisations)

Operationalising the definition (OTS) If your organisation earns income from contracts or from trading, when these are combined, did they account for 50% or more of your total income? If your organisation does generate a surplus or profit from its contracts or trading, do you use it to further your social or environmental goal? This could include reinvesting it in your or another third sector organisation or in the community. (ASBS <50% to owners) Social enterprises are businesses with primarily social objectives whose surpluses are largely reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for shareholders and owners. Does this describe your organisation? (Self ID question)  [They have a primary purpose to pursue a social or environmental goal (as opposed to being purely or mainly profit driven); IFF]  Social ownership (CLG + IPS) – participative, membership

Ideology and Social Economy: New Labour’s Third Way + Cameron’s Big Society – Blair and Clinton - renewal of social democracy – Economic dynamism with social justice – (opportunity with fairness) – reforming public services (efficient/effective) – rights and responsibilities – developing civil society – new systems of governance (partnership)

Cameron’s Big Society Increased social responsibilities for individuals and families with policies that nudge people in a particular direction; ‘our ambition is for every adult in the country to be a member of an active community group’ Localism – power decentralised to the lowest possible level including empowering communities to take over local amenities such as parks and libraries that are under threat; Greater responsibility for civil society and a focus on the ‘little platoons’ undertaking social action projects – ‘a society where people come together to solve problems and improve life for themselves and their communities’;

Big Society2 A smaller national and local State with the consequent need for lower taxes and with State monopolies being broken. Eric Pickles, Secretary of State for Communities, told Radio 4’s World at One: ‘Even at a time when money is tight, it is still possible to find different ways of delivering. It is unashamedly about getting more for less.’18 In his 19 July speech, the Prime Minister spoke of fostering a culture of philanthropy and voluntarism1; Increased transparency/accountability of Government including a right to know and a right to data; Some greater sphere (or burden) of activity being undertaken by the third sector and wider civil society; ‘our public service programme will enable social enterprises, charities and voluntary groups to play a leading role in delivering public services and tackling deep-rooted social problems’ Reform of the planning system.

UK Policy framework: social enterprise Create an enabling environment for social enterprise – Government role (interdept, enabling, direct support to 3 rd ) – Legal and regulatory issues – Public procurement Make social enterprises better businesses – Business support and training – Capacity Building – Finance and funding Establish the value of social enterprise – Establish the knowledge base (research) – Recognise achievement and spread the word – Create trust: social audit and quality

Some current interesting themes Asset transfer Policy contradictions: rhetoric vs reality Contracting experience: size counts (BIG) WISE and Freud report Changing development: cuts and development - virtual networking (coop hubs) Social investment: Big Society Capital Crisis, cuts and turbulence: LA Funding, polarisation: large and small? Research: TSRC Place of social enterprise in policy?

Thanks Qs?