Tom Flanagan Corporate Director EPE 26 September 2011 Social Impact Bonds & Local Integrated Service Trust (LIST) Growing a Social Investment Market “Britain needs new ways of tackling some very stubborn and expensive problems such as fractured communities, homelessness and high rates of re-offending. Social entrepreneurs and the social ventures they lead bring innovative solutions by combining social mission with sustainable business models.” Cabinet Office – February 2011 www.cornwall.gov.uk Annual Operational Budgets vs Long-term Multi-Agency Investment in Prevention A Potential Value For Money Solution! In Cornwall we have the opportunity to: • Build on an innovative social enterprise culture • Explore the opportunity of Social Impact Bonds • Create a Local Integrated Service Trust (LIST) • A LIST that will facilitate Social impact Bond Funding www.cornwall.gov.uk www.cornwall.gov.uk The Local Integrated Service Trust www.cornwall.gov.uk www.cornwall.gov.uk Social Impact Bond – Key Criteria • Raise minimum of c£5m investment • Based on agreed Intervention/Diversion Strategy • Agree timescale for success criteria • Have confidence in chosen metric(s) over 5 years • Require a public sector contracting party • Agreement with established social enterprise • Could apply to arms-length wholly-owned companies www.cornwall.gov.uk Cautious Optimism • New idea, new language, new thinking • This sounds great – can we make it happen? • Concerns around the following: What is the financial case? Motive of investors? Low risk – yes, if we get the business case correct! Will it be able to support our challenges/priorities? www.cornwall.gov.uk Peninsular Discussions - Progress to Date • Potential Areas of Benefit • Children’s Services In Families In Care • Offender Management In Prison In the Community • Health Infrastructure & Non-Clinical Clinical • Worklessness NEETS Adults • Waste/Landfill/Recover-Reuse-Recycle www.cornwall.gov.uk Peninsular Discussions - Progress to Date • Proposed Work Streams • • • • • • • Children’s Services (Torbay) Recession – Impact on Young People (Plymouth) Offender Management (Torbay) Health - Telecare & Non-Clinical (Cornwall) Health - Clinical (Devon) Worklessness (Cornwall) Waste/Landfill/Recovery (Cornwall) www.cornwall.gov.uk Next Steps • Engage with our partners & stakeholders • Identifying appropriate social issues for SIB/LIST • Creating Intervention & Diversion Strategies based on current work streams • Intervention/Diversion Strategies – lead to Business Case • Research preferred options with funders/intermediaries • Develop Cornwall (Peninsular) Funding Model www.cornwall.gov.uk Can we afford it Caution & Optimism New Money What is everyone’s motivation Virtuous circle Low Risk Questions & Discussion www.cornwall.gov.uk