Trade and industry secretary Patricia Hewitt is today launching a new strategy designed to assist social enterprises.

A Bank of England review of finance options for social enterprises will be conducted under the strategy, while awards will be set up to recognise high quality and fast-growing organisations.

Social enterprises include homelessness magazine The Big Issue, and the Eden Project in Cornwall.

They provide local services concerning social issues, channelling any profit into further investment.

Forum Response: British Bankers Association

A spokesman for the BBA told ePolitix.com: "The banking industry is supportive of social enterprises. Individual banks have their own initiatives in place and work closely with organisations representing social and charitable enterprises, housing associations etc.

"The industry has a long and successful track record of working constructively with the Bank of England, for instance on small business issues and we shall be pleased to work with them on this too, if we can be of assistance.

"The BBA published a free guide on social enterprise in December 2000 ("Understanding Social Enterprise") to help banks and business support organisations better understand the social enterprise business sector (commissioned jointly by the BBA and the DTI's Small Business Service and written by Social Enterprise London).

"It explains the wide range of social enterprises, drawing out the differences and similarities between them and traditional firms. It is available on the BBA website www.bba.org.uk"

Forum Response: Institute of Directors

"The IoD welcomes the news that the Bank of England will be carrying out a review of finance needs of social enterprises. Social enterprises have an important role to play in the UK economy.

However, if the government wants to assist social enterprises' in their quest for finance, one of the most useful actions that it can take is to reduce the tax burden on individuals and businesses.

"Cutting the tax burden on individuals will leave more money available for investment in start up enterprises of all kinds. The government must refrain from increasing the tax burden and work to reduce it."

Forum Response: Barclays

A spokesman for Barclays told ePolitix.com: ""Increasingly the economic, social and cultural contribution made by social enterprises is being recognised.

"At Barclays we have devoted a great deal of effort to addressing issues of financial inclusion and the provision of finance to small businesses and have been very impressed by the contribution made by many social enterprises."

Forum Response: Lloyds TSB

A spokesman for Lloyds TSB told ePolitix.com: "Lloyds TSB welcomes the announcement of a Bank of England review for social enterprises and a new social enterprise accreditation scheme, as outlined in the government' "Social Enterprise: a strategy for success" and looks forward to being involved.

"We have already participated in research into the business drivers for investment in communities where investment is required. This highlighted the importance of social enterprises and social entrepreneurs as a critical precursor to effective private and public partnerships in those areas.

"We also work with a number of local and national community schemes in support of social enterprise, including Community Finance Development Initiatives such as the PRIME scheme for the over 50s and the Portsmouth Area Regeneration Trust."