Ed Miliband welcomes first anniversary of Community Interest Companies
Ed Miliband, the Minister for the Third Sector, today celebrated the creation of almost 350 Community Interest Companies (CIC) since they were introduced by Government 12 months ago.
The CIC model is the first new legal form for a company created in over 100 years, and allows socially-motivated businesses make a public, permanent declaration that the company will always work for their community – putting social and ethical purposes at the core of what they do and creating lasting progressive institutions.
Speaking at a 1st birthday event for CICs, Ed Miliband said:
“I am delighted to celebrate the first anniversary of Community Interest Companies – 344 have been created, almost one for every day of the last 12months.
“The founders and supporters of CICs have not only achieved lasting changes in people's lives, they have created lasting agents of change – by founding organisations that have made a permanent commitment to work for their communities.
“The success of CICs and other social enterprises in placing social responsibility at the heart of their business poses a growing challenge to the private sector, to reinforce what is already done in the name of corporate social responsibility and ensure that ethical business activity is real and meaningful.
“The Government will continue to work to ensure that social enterprises are free from unnecessary regulation, have sufficient access to secure capital and, where they wish to be, are well–placed to help deliver public services.”
Mr Miliband also paid tribute to the CIC Regulator John Hanlon after the vast majority of CICs described their experience of setting up CICs as ‘easy
’ , and have welcomed the regulator's light–touch approach.
Notes to editors
- At the CIC 1st Anniversary event hosted by the Social Enterprise Coalition event on July 10, RBS/Natwest revealed the outcomes of a survey of CICs established so far, which showed that 89% of those surveyed described the CIC application process as ‘
easy
’ or ‘very easy
’. Ring Lisa Knowles, Social Enterprise Coalition for more on this (020 7793 2318).
- CICs are the only new company structure to be introduced in the UK in the past 100 years. Primary legislation was approved within the Companies (Audit, Investigations and Community Enterprise) Act 2004. Secondary legislation governing CICs came into effect on 1 July 2005.
- The CIC gives social enterprises a dedicated brand, legally protects assets from distribution, directors can be paid and capital raised. The CIC allows socially motivated businesses to declare themselves, unambiguously, as organisations that dedicate their assets and efforts to the community benefit, in perpetuity, rather than distributing profits to members or shareholders.
- The independent CIC regulator is John Hanlon. He decides whether companies can be CICs, and has a role in promoting the CIC brand and making government aware of CIC needs.
- In recognition of the increasingly important role the third sector plays in both society and the economy, the Prime Minister announced a new Office of the Third Sector in May 2006. Ed Miliband was appointed as the new Minister for the Third Sector, working in the Cabinet Office to Hilary Armstrong, Chancellor of the Duchy of Lancaster. For more information, please go to http://www.cabinetoffice.gov.uk/thirdsector/.
- The most recent government statistics show that social enterprises contribute £8.4billion a year to the UK economy, almost 1% of GDP. The Government's Annual Small Business Survey 2005, which for the first time looked at a wider pool of organisations than any previous survey, found At least 55,000 businesses in the UK are classed as social enterprises, accounting for 5% of all businesses with employees, with a turnover of £27billion per year.
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