A couple of important statements for Financial Inclusion were included in the Pre-Budget Report yesterday. Firstly, the Pre-Budget Report announces a commitment and forward timetable towards the establishment of a Social Investment Wholesale Bank. This is backed up by an intention to commit up to £75m start-up funding from dormant account assets, subject to availability and alongside other priorities.
The Social Investment Wholesale Bank will be a wholesaler of social investment finance. It will aim to leverage in investment for organisations with social impact from a wide range of sources to improve their access to finance. The bank will also aim to increase financial inclusion by supporting Community Development Finance Institutions and credit unions. The institution would be independent from Government.
Secondly, the Government believes that the banks have a vital role to play in supporting communities and tackling financial exclusion. It is important to understand how banks are supporting our broader community regeneration work. The Pre-Budget report therefore states that the Government will explore options with the banks to improve the information available on services delivered in deprived communities.
For more information on the Pre-Budget Report go here