Pre-election insights for social business

David Alcock, partner and head of social business considers the future for the social business sector.

Some interesting ideas have been put forward by almost all the main parties to address the current crisis in public services provision – and many people believe there is a greater role for social purpose organisations.

The time is right to explore a new model of public service delivery that doesn’t result in profits being extracted for private benefit. The Lib Dems’ manifesto promotes a ‘public benefit company’ model for monopoly utility companies in general, and the water companies in particular. The same party has suggested requiring all large companies to have a formal statement of corporate purpose, which goes beyond shareholder value. These are positive ideas for change that must not be lost, regardless of the election outcome.

Labour’s manifesto speaks of ‘doubling the size’ of the co-operative and mutuals sector and addressing some of the barriers that have been holding social enterprise back. This is all positive stuff that recognises the increasingly valuable role that social businesses are playing in society. But let’s not forget the findings of the current Law Commission review of co-op law – these must be carried through. Distinctive forms of ownership have a key part to play in the broader economy.

Many other ideas in the manifestos deserve to be captured and considered further. Just a few of them are shown below:

Employee ownership – The Lib Dems have a specific focus on encouraging employee ownership, with proposals that staff in large companies should be able to request that shares are held in trust for the benefit of employees.

Community involvement in housing – There is some consensus on the value of community involvement in housing. Labour wants to ensure that local communities have a say in shaping housing in their areas. The Conservatives would support more community housing schemes. The Lib Dems would expand Neighbourhood Planning.

Community ownership – Several parties would like to do more to support the community ownership of assets. The Conservatives would extend the life of the Community Ownership Fund for a further three years. The Lib Dems would enhance powers over community assets to protect key local facilities. Both Labour and the Lib Dems have committed to reforming governance in football, with a focus on involving fans more in the governance of clubs.

Community energy initiatives – Both Labour and the Lib Dems would support further localised energy generation by community organisations, with a commitment by Labour to support local energy co-operatives.

David Alcock, partner and head of social business