A Landmark Moment for the UK’s Impact Economy

We are delighted to welcome the Government's announcement of the new Office for the Impact Economy, led by Rt Hon Darren Jones MP. It represents a bold step towards unlocking the full potential of impact investment, philanthropy, and purpose-driven business to deliver sustainable and inclusive growth, both locally and nationally.

The impact economy, where businesses, social investors, and philanthropists use their expertise, resources, and investment to drive positive results in communities, is estimated to be worth £106 billion to the UK. Yet until now, its full potential has remained untapped. The new Office, based in the Cabinet Office, will act as a 'front door' for new impact economy relationships, coordinating engagement across government and driving capacity building to support partnerships with the sector. GOV.UK

This announcement follows the final report of the Social Impact Investment Advisory Group (SIIAG), published just a week earlier. The report, Mobilising the impact economy as partners in national renewal, calls on government to partner with the impact economy to unlock billions in capital to address pressing challenges such as child poverty, clean energy, and affordable housing.

Through our work facilitating the Impact Economy Collective, we have seen first-hand what this kind of partnership can achieve. From supporting the SIIAG's work, to convening Impact Economy Policy Labs on early years, health and work, cancer, and place, the Collective has brought together philanthropy, impact investment, business, and government around shared priorities.

The Impact Economy Collective was set up to bring philanthropy, impact investment, business, and government together to drive sustainable, inclusive growth across the UK, tackling disadvantage and generating opportunity. The launch of the Office for the Impact Economy shows that the Government is committed to turning ambition into action, and partnering to turn ideas into making a difference in people's lives.

The Office will build on initiatives such as the £500 million Better Futures Fund, set up by the Chief Secretary to the Prime Minister during his time at the Treasury, which will support up to 200,000 children and their families over the next ten years. It will also work alongside the Office for Investment's dedicated impact capital function, coordinating engagement across the entire UK.

Darren Jones, Chief Secretary to the Prime Minister, reflected on the personal significance of this work: “Community foundations invested in the council estate I grew up on, developing local organisations that anchored our community and provided the opportunities to help people like me to get on in life. Truly meaningful and long-lasting impact is created not from focusing on internal processes in Whitehall, but when government empowers communities".

Congratulations to everyone who has contributed to this milestone, across government, the impact economy, and beyond. The work starts here.

Dominic Llewellyn

Learn more about the Office for the Impact Economy and read the SIIAG final report.
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