Big Society 'has wide applications'

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A government minister has told MPs that the Big Society is "a notion with very wide applications".

At cabinet office questions, Bernard Jenkin (Con, Harwich and N Essex) said he "commends the intellectual ideas behind the Big Society".

He asked if it should be described as "a collection of policies" rather than one concept.

Cabinet office minister Oliver Letwin said it has wide applications, and the Big Society bank will be able to foster support for a wide range of community groups and projects.

He said the bank will fund to "social lenders" and other bodies lending to the voluntary sector and community organisations.

Lindsay Roy (Lab, Glenrothes) asked how the government intends to define social enterprise as there is no existing legal definition.

Letwin said such enterprises have a multiplicity of forms, but the "common theme" is that they do not make profit for shareholders.

Payments from the bank should begin in the next few months, he added.

Nadhim Zahawi (Con, Stratford upon Avon) said commercial banks are unwilling to lend to new ventures and asked if the Big Society bank will not exclude new businesses and innovative companies.

Letwin said the Big Society bank will operate through social lenders to reach out to the smallest ventures.

Robert Halfon (Con, Harlow) asked what steps are being taken to improve access to government contracts for small companies.

Cabinet office minister Francis Maude replied that "all measures" are being taken, not just to encourage SMEs but the voluntary sector.

He said that the government aims to award 30 to 40 per cent of the value of its contracts to the voluntary and charity sector, representing £100m annually.

Shadow cabinet office minister Tessa Jowell asked why the government has still not published its public sector reform white paper.

She said it is either "the biggest pause" or ministers "have just given up".

Maude said he is determined to break "the old public sector monopolies" and more information will be published this summer.