Social enterprises – businesses that benefit social causes – should be offered tax incentives, according to a proposal published by the Conservative party.
The proposal aims to establish ‘social enterprise zones’ which will attract investment to deprived areas and aspires to emulate Enterprise Zones set up during a Tory government in the 1980s and that helped with the regeneration of London’s Docklands into a global financial centre.
Tory leader David Cameron has previously stressed the importance of redeveloping deprived areas.
Announcing the proposal, shadow minister for the third sector, Greg Clark, said: “This is a welcome addition to the debate about how we can help the third sector to transform Britain’s hardest pressed communities.”
He added: “Social enterprises can bring new life, money and jobs into areas of deprivation, but often lack access to capital they need to start up or grow. This proposal would provide cash incentives to bring investors together with social entrepreneurs.”
A new ‘community bank’ is central to the proposal, and would distribute funding and administer tax relief.
Rodney Lord, the joint chair of the task force, said: “We believe this can make a real difference to the life chances of people in our hardest pressed communities.”
The report also proposes reduced planning restrictions for social enterprises within the zones.
© Crimson Business Ltd. 2007
