To move forward from the riots, the government must invest in BAME social enterprise
3 min read
This pro-growth Labour Government should use the UK's dormant assets to invest in Black, Asian and Minority Ethnic communities.
The UK has been left in a state of shock following, arguably, the worst and most widespread race riots seen in a generation. How to move forward and show everyone the benefits of us all pulling together as one?
BAME-led, inclusive, economic growth. Economic benefit being brought to left-behind areas.
But, we need to see investment. Investment into BAME charities and social enterprises — the groups that Pathway has found, have the potential to turbo-charge their communities’ micro-economies.
Polling recently commissioned by Pathway has shown the majority of the British public wanting the pro-inclusive growth Government doing more to support BAME communities. Having been announced as the first Chair of Pathway, I agree – the Government must take fast, decisive action, getting serious about investment and opportunity creation, in those areas.
Over 97 per cent of those running the BAME social enterprises that can deliver this change have lived experience in the communities they’re helping. They drive enterprise, SME growth, facilitate the acquisition and retention of assets, and undertake research, joining-up local and central governmental agencies.
The Adebowale Commission has found that, if invested in, they could help generate £1 billion for the Treasury and £3 billion for the economy. And that’s why, through Do It Now Now’s ‘Make it Big’ programme, we have been funding 12 organisations offering educational, employment, and business opportunities, to enterprise projects in the climate, poverty alleviation, and racial justice spaces.
Where can this investment come from, however?
Well, in part, from dormant assets. Straight and clear. Assets not touched by large organisations and largely wealthy people, for such a long time, that it becomes the state’s. This money going to good causes. There exists a scheme to provide organisations like Pathway with the capacity to deliver this: the Dormant Assets Scheme.
However, we’re waiting on that Scheme’s second round to be announced and for its support for BAME communities to be detailed. The Financial Conduct Authority on 2 August published its results on how the Government should execute the second phase, finding that it could release £880 million with a significant segment of that potentially going to ‘good causes’. It’s important that we see at least some of that money going to the sorts of good causes supported by Pathway, with the social investment sector, as a whole, being properly supported, too.
Our polling has found that over 50 per cent of the British public want to see the Government do more to support BAME communities. Over 60 per cent want to see dormant assets money going to good causes – only 12 per cent are against the money being used in this way – and crucially, the Labour Party wants to deliver inclusive economic growth.
Our research, however, has found that without a portion of this funding such social change will not be brokered.
Seventy six per cent of the 1,000 BAME charities polled by Pathway have been refused funding, they believe, because of their race or ethnicity. Our partner, Do It Now Now, has found that 66 per cent of those entities say that cost pressures have stunted the impact that they can have on their communities, limiting community cohesion and community growth.
The answer to this all, then, becomes very simple. Use an allocation of the Dormant Assets Scheme’s funds to support wholesalers, like Pathway, in their work with BAME groups, helping them generate some 180,000 jobs and 36,000 jobs in the UK’s most deprived communities.
That means jobs for all. Everyone seeing the benefits of cross-community cohesion and collaboration. That means inclusive growth. And that means us never seeing anything as shocking as that which we have witnessed, over the past fortnight, in this country, ever again.
Lord Hastings is a crossbench peer and Chair of Pathway Fund.
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