The Impact Investing Institute has warmly welcomed the Government’s decision to establish a new Office for the Impact Economy. This new body will build partnerships and investment opportunities aimed at improving lives and communities across the UK.
The creation of an Office like this was a central recommendation of the Social Impact Investment Advisory Group (SIIAG), in which the Institute played a critical role.
With this announcement, the Government provides the clear direction needed to mobilise major sources of private finance, including pension funds and institutional investors, to deliver on ambitions for national renewal.
A focal point for partnership
The primary role of the Office for the Impact Economy will be to provide the strategic leadership, coordination and drive the necessary change to embed partnership with the impact economy across all of government.
Dame Elizabeth Corley, Chair of the SIIAG and Chair Emerita of the Impact Investing Institute, commented on the news:
“This announcement is a welcome step by the Government towards fulfilling the opportunities for shared impact laid out in our recent report. The formation of an Office for the Impact Economy creates a focal point for new partnerships, and a hub for the capability building and behavioural change needed across government to mobilise the full creative and capital resources of the impact economy in support of national renewal.”
The Office will also serve as a clear ‘front door’ for external stakeholders in the UK and abroad, strengthening the UK’s position as a leading global centre for impact capital and internationally mobile investment. The visible leadership of the Office and its Ministerial sponsors is expected to help attract more of the £1.9 trillion global pool of impact capital to the UK.
Scaling institutional investment
A key element of the new Office’s work will be to help break down barriers within government and reform processes to speed up the flow of impact capital. The Institute anticipates that this coordination will help the continued scaling of the UK’s institutional impact investment market, which is already worth an estimated £76.8 billion and rising by more than 10% between 2021 and 2023.
Bella Landymore, Co-CEO of the Impact Investing Institute, said:
“The Impact Investing Institute is immensely proud to have played a supporting role in the work of the Social Impact Investment Advisory Group. The creation of the Office for the Impact Economy is a landmark moment, and we now look forward to working closely with the new Office team.
Our priority will be to act as a vital bridge between government and the growing community of institutional impact investors, ensuring that the SIIAG’s ambitious recommendations are swiftly put into practice to drive real, measurable change.”
The Office is an important step towards making co-design and collaboration with impact investors standard practice across government, ensuring public money acts as a catalyst for private investment to achieve better outcomes for people and places across the UK.
Learn more about the Social Impact Investment Advisory Group (SIIAG’s) recommendations.