The UK chancellor Jeremy Hunt outlined a budget last week that sought to bring stability to the country’s finances. Yet the looming recession is plummeting social enterprises and the communities they serve into crisis.
Latest quarterly survey from Social Enterprise UK finds 3% of social enterprises say they’re at risk of closing in the next few weeks as costs rise and turnover drops amidst calls for more help from the government.
AstraZeneca and Siemens among corporations that bought a quarter of a billion pounds-worth of goods and services from social enterprises as part of the £1bn Buy Social Corporate Challenge launched in 2016.
Government this week reveals detail of its energy support scheme for businesses and charities, but uncertainty remains as to what will happen in six months’ time as cost of living crisis continues to bite.
The prime minister’s plan to protect against surging energy prices only provides support for businesses for the next six months, and lack of clarity over immediate measures leaves social enterprises at risk of closure, fear membership bodies.
Social enterprises “significantly more resilient” on some measures than commercial businesses – with staff more likely to be retained and hired – but threats of unsustainable margins and reduced cashflow loom.
New figures from UK's CIC Regulator also show overall number of community interest companies grew at record slow pace in 2021-2022 financial year, following unusual spike during Covid-19 lockdowns.
Around £738m is up for grabs in England as government reviews Dormant Assets Scheme's current priorities of social investment, financial inclusion and youth.
