BUDGET NEWS – Budget Boost for Social Enterprises
Budget Boost for Social Enterprises
Chancellor’s plans set to help Scottish companies
The UK budget announcement has been welcomed by the Scottish Social Enterprise Coalition.
According to the trade body, the Chancellor outlined a number of measures aimed at boosting the Big Society, which will in turn help social enterprises boom.
The Coalition cites the following measures, which will boost Scotland’s social enterprises:
- The confirmed tax breaks for inward investment will provides an added boost to Scottish Social Enterprise companies.
- The discounting of the Office of Tax Simplification’s advice resulted in the Chancellor keeping the Community Investment Tax Relief (CITR), with Osborne actively encouraging people to take it up.
- An increase in apprenticeships – on which the Scottish Social Enterprise Coalition has called for many times – will provide a much-needed avenue to finding work for many in the UK.
Antonia Swinson, chief executive, said: “We have a very active and politically engaged Coalition membership here in Scotland and thanks to everyone’s dedication to the cause we have seen some real progress in this budget which supports social enterprises across the UK.
“South of the border the Big Society is a key policy topic, however here in Scotland we have many successful social enterprises which for many years have significantly contributed to our own economy, delivering high quality skills training and public services and regenerating local communities.
“What Scotland’s social enterprises need now is inward investment. We have therefore been campaigning hard to ensure that would be social investors receive the same tax incentives as private sector investors. It has been a true team effort. Many of our members wrote letters to their local MPs , several raised the matter with visiting ministers before Christmas and this January three members met with Danny Alexander, Chief Secretary to the Treasury stressing the importance of CITR and other initiatives to the survival and growth of social enterprises across Scotland and the UK as a whole.”
The Scottish Social Enterprise Coalition would have welcomed the Chancellor extending the Enterprise Investment Scheme Relief (EISR) to include social enterprise models, however recognise that the EISR has been raised to 30 per cent with the investment ceiling doubled for individual investors to £1m, boosting eligible businesses such as community interest companies and cooperatives.
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For further information please contact Paula McNulty at Weber Shandwick on 0141 333 0557/ 07770 886 924 or email pmcnulty@webershandwick.com.
Notes:
Social Enterprise
Social enterprises trade specifically to deliver a social purpose. This is a distinct business movement, with roots in the voluntary sector which is increasingly recognised for its power to transform communities and the lives of individuals. Key models include housing associations, co-ops, credit unions, community interest companies, development trusts and social firms operating across a range of sectors including renewable energy, social care, social housing, tourism and cultural services and recycling.
Scottish Social Enterprise Coalition
The Scottish Social Enterprise Coalition is the collective membership-led policy and campaigning voice for social enterprise in Scotland. It represents the needs of social enterprise to politicians, policy makers and opinion formers. Members and associates include national and regional intermediary organisations, individual social enterprises and key supporters of the sector. Its aim is to add value to its members’ work and achieve maximum impact for the sector, ensuring it is widely represented in policy development.