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Changes to encourage more investment in disadvantaged
communities announced
Sector: Local Government
Date Created: Tue 5th Feb 2008, 15:24:34
Source: Department for Business, Enterprise and Regulatory
Reform
Link: www.berr.gov.uk
UK - New measures to boost the
amount of finance raised and channelled into new and expanding
businesses in disadvantaged
areas have been announced by the government today.
The changes are designed to strengthen the ability of organisations,
known as community development finance institutions (CDFIs), to attract
private investment. In turn, these organisations provide access to
finance for enterprises in disadvantaged communities that have been
turned down by mainstream providers like banks.
Enterprise Minister Shriti Vadera said:
"By allowing more community development
finance institutions to lend with the backing of government secured
loans, we are improving the options available to small businesses
looking for finance. Together, these changes will enable the community
development finance sector to attract greater private investment,
increase access to finance, and foster enterprise in the most disadvantaged
communities in the UK."
Exchequer Secretary to the Treasury, Angela Eagle said: "CDFIs'
work in extending finance to economically disadvantaged areas is
invaluable in helping our attempts to reduce the disparities in economic
performance across the UK and draw on the full potential of everyone in our
country. I am pleased to announce changes to the Community Investment Tax Relief
that will make them work even better."
Phil Hope, Minister for the Third Sector, said: "CDFIs
can get into those places which mainstream finance can't or won't
reach, financing thousands of enterprises, jobs and households in disadvantaged
communities. We want to improve the way Community Investment Tax Relief works
- because we're committed to supporting innovative social investment models
in the long term. We know such models help social enterprise to thrive, thereby
creating social and economic value." |
