HISTORIC PRESS RELEASE : Design of £125m futurebuilders completed [September 2003]

The press release issued by HM Treasury on 11 September 2003.

Details of the £125m futurebuilders investment fund to assist the voluntary and community sector to deliver public services were announced today. The fund will be used to provide access to finance for voluntary and community organisations and social enterprises to deliver public services in five key service areas.

The fund will be used and distributed in different ways tailored to suit the varied needs of the voluntary and community sector. This will include grants and various types of loans. Loans will primarily be given to organisations that cannot raise finance on the commercial market. There will be flexibility to use a mixture of types of finance for individual schemes, as well as the ability to phase in the finance over time.

The fund will be managed outside Government by institutions tuned in to the needs of the sector. An open competition will be held to appoint the fund manager(s) who will determine which organisations are eligible to receive the fund based on the principles published today.

Paul Boateng, Chief Secretary to the Treasury, said:

“The Government wants to make it easier for the voluntary and community sector to contribute to public service delivery. futurebuilders will fund the best ideas in order to create exemplars that inspire and lead in voluntary and community sector delivery of public services. The fund will showcase what the sector can do when enabled to function at its best. I am confident that the unique design of the fund will help the money reach those in the sector who will make best use of it.”

The fund’s design is based on a joint assessment by Government and the sector of what is needed and what will work most effectively for the sector.

Sir Michael Bichard, Chair of the Compact Working Group, said:

“futurebuilders marks a new way of working between the voluntary and community sector and government. It underlines the value of the Compact as a vehicle for strengthening the partnership between us. This is demonstrated by the fact that today’s report is a joint publication by Government and the sector.”