Funding news

£200m from national banks confirmed for Big Society Bank - 9 February 2011

The £200m fund is in addition to between £300m and £400m of funding expected to be received from dormant accounts.

David Cameron has confirmed that a settlement between the government and the UK’s largest banks will inject £200m into the newly formed Big Society Bank, which is to be set up to provide capital for voluntary sector groups.

The figure is significantly lower than the anticipated £1.5bn earlier rumoured to have been provided by the banks, however the announcement has been welcomed by NCVO chief executive Sir Stuart Etherington:

'This is a good start which demonstrates that the government is listening to the sector’s concerns about the challenges ahead,' he said.

However, he thenwent on to stress the importance of additional private capital. This feeling was reiterated by the Charity Finance Directors' Group chief executive, Caron Bradshaw, also hesitant, she was 'pleased to see' the additional funds, but added:

'Without wishing to quash Government’s positive step in the right direction the amount is a drop in the ocean when considered again a backdrop of the financial squeeze being experienced by the sector. There will need to be significant other sums available to the sector to fill the funding gap and Government must play its part in pressing for more investment in to the sector.'

The Bank aims to issue its first funds in the autumn of this year.

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