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What the Budget means for social enterprise
An update on our collective policy campaigning from Cwmpas, Social Enterprise Northern Ireland, Social Enterprise Scotland and Social Enterprise UK
Although the new UK Government’s first Budget marked positive shifts like investment in public services, many social enterprises have concerns about how it could affect their business, which we’re currently working to urgently address.
Social enterprises are committed to paying a living wage and providing good jobs, often for those furthest from the labour market and in the most deprived areas – but many will struggle with additional costs from increased wages and employer National Insurance Contributions, particularly those reliant on public sector contracts. It’s not yet clear if some providers will be exempt from additional costs, or reimbursed in some way, or neither.
Different departments have given contradictory messages, so we’re seeking clarity on details of the plans and their potential impact; Scotland’s First Minister has also committed to pressing the UK Government on this. To deliver manifesto commitments around community services and prevention, government must recognise the essential role of social enterprises in their delivery across the country. We’re liaising urgently with politicians and policymakers in all four nations to ensure they understand these issues and work towards a fair resolution.
We’re also engaging partners and wider stakeholders impacted by the changes to maximise our collective impact, as this could have serious consequences for social enterprises who provide vital services every day. There are calls to protect GPs and social care providers, but we know this issue goes further – from healthcare to hospices, school meals to children’s homes, leisure facilities to community transport, all over the country.
To help shield the many vital social enterprises reliant on public sector contracts from these potentially crippling costs, please add your voice to our petition.
We hope the Chancellor will use her additional spending power to create the conditions where mission-led businesses like social enterprises can thrive, which will ultimately build a stronger and fairer economy – but we won’t just wait and see. We exist to be a strong voice for social enterprise, so we’ll make sure that central and devolved governments understand our needs on this budgetary issue and beyond.
