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Five ways Burnham can support social enterprise in his first 100 days
By Jovan Owusu-Nepaul – Head of Public Affairs at Social Enterprise UK
Today (Monday 20 June) Andy Burnham entered Downing Street. With an already warm slogan shaping his world view, ‘good growth in every postcode and hope in every heart’, he marries together heart and head in hopes of re-casting the direction of British politics. In it, forging a new path for how we arrange our social and economic life.
Despite the fact that he will inherit an economy still on a quest for growth and increasingly squeezed by a ballooning welfare state, Burnham sets to inherit greater economic stability, and one where interest rates have climbed down to more manageable levels. Albeit not the 2.5% BoE target.
However, all of this is completely irrelevant if communities still feel far too disconnected from economic prosperity. After six previous Prime Ministers, Burnham’s government will rightly be judged on whether it can deliver growth that reaches every part of the country. This isn’t just growth in GDP, but growth in opportunity and wellbeing in a more resilient economy.
Social enterprises are ready to deliver on this mission.
In Britain today, there are around 100,000 social enterprises in the UK, with a collective turnover of £60 billion and employing around 2.3 million people. They provide childcare, health and social care, housing, education, culture, environmental services and reignite the high street with purpose. Unlike conventional businesses, their profits are reinvested into the communities they serve.
Andy Burnham has long recognised the value of business with purpose. As Mayor of Greater Manchester, he championed the role of social value in procurement and demonstrated how economic development can be aligned with community benefit. His commitment to ensuring public contracts properly account for social value is an important foundation.
But there is an opportunity now to build.
If a Burnham government wants to build an economy that works for everyone, social enterprise must be at the heart of this economic and reindustrial strategy. This includes as part of government’s public service reform and devolution agenda. Here are five actions that could be taken within the first 100 days.
1. Give social enterprise a seat at the table
Establishing the Office for the Impact Economy was a great step for social enterprises but they have too often fallen between government departments, considered as neither wholly business nor wholly civil society. That must change. Government needs to formally recognise social enterprise as part of the UK’s business economy, with ministerial responsibility sitting within the Department for Business and Trade, working in tandem with social enterprises on the ground and experts who work collaboratively with the Office for the Impact Economy.
2. Launch a cross-government social enterprise strategy
The contribution social enterprises make to economic growth is outsized. Consider employment, health, housing, education, net zero and local regeneration, to name a few. Yet policy affecting the sector remains fragmented.
Within its first 100 days, government should commission a cross-government Social Enterprise Strategy, coordinated from the centre of government (No10 and the Cabinet Office) with clear responsibilities between departments and measurable outcomes, and working together with social enterprises, sector leaders and civil servants. This would ensure social enterprise becomes a delivery partner for the government’s agenda rather than an afterthought.
3. Put social value at the heart of public spending
Government spends hundreds of billions of pounds each year buying goods and services. Burnham has already committed to strengthening social value in procurement. The next step is implementation: ensuring every department measures social value consistently and equitably, whilst increasing opportunities for social enterprises to compete fairly, and removing unnecessary barriers that favour large incumbents over innovative local providers.
Public money should create social value.
4. Make growth more inclusive
Labour has committed to creating a stronger economy and supporting more diverse business models. Social enterprises already demonstrate that commercial success and social impact can go hand in hand. We do not need to farm our services and domestic assets (housing, children’s care) to overseas private equity. Government should ensure social enterprises are fully included in business support programmes, regional growth funds, export support and innovation initiatives. They should not need separate programmes, they should have equal access to mainstream economic policy. It is time to support the British social entrepreneur who leads in their community and creates localised community prosperity.
5. Back community wealth building
Economic growth is strongest when wealth stays within local communities.
Government should work with mayoral authorities and local councils to expand community wealth building, supporting local procurement, employee ownership, community businesses and social enterprises as anchors of local economies. Greater Manchester has already demonstrated what is possible; the challenge now is to make this a national model.
A different way of doing business
Burnham has often spoken about building an economy that works for working-class people and communities across the UK. Social enterprises represent that ambition daily. They generate revenue, create jobs, innovate in public services and reinvest profits to tackle the very challenges government is trying to solve.
The first 100 days of any government sets the tone for the years that follow. By recognising social enterprise as a central part of Britain’s economy, Burnham could unlock billions in economic activity while strengthening communities across the country.
The sector is ready to help. What it needs now is a government prepared to put it at the heart of its economic strategy.