£1 million approved to bolster scheme to reduce inequality

£1 million approved to bolster scheme to reduce inequality

A bold initiative to reduce inequality across the region has taken a major step forward, with £1 million in funding unanimously approved by the Combined Authority on Monday (December 16).

This groundbreaking project – working title Greater Cambridge Impact – is designed to support disadvantaged communities and aims to raise a 10-year, £10 million investment pot that will deliver lasting, measurable change.

Greater Cambridge Impact will take an innovative approach to tackling inequality, especially around education, social mobility, health and homelessness. It will invest in charities, social enterprises and community interest companies offering bold solutions, using mechanisms such as equity investments and loans, while working closely with local government. Returns from local government investments will be reinvested, ensuring a sustainable cycle of funding for social innovation.

Cambridge City Council initiated this project, and city councillors also made an in-principle commitment of £1 million in July 2023. Together with the Combined Authority’s commitment approved at the Investment Committee on Monday (December 16), this represents significant support from the region which will help to secure the wider investment needed to reach the £10 million target.

Cambridge is ranked as one of the most unequal cities in the UK, but inequality exists in communities across the whole Combined Authority area. Greater Cambridge Impact aims to help people across the region share in the prosperity and opportunity driven by its globally competitive economy.

The initiative will be managed through a joint venture company, with the Combined Authority holding a seat on the board. This ensures that investments are aligned to the region’s priorities for reducing inequality and driving “good growth.”

By demonstrating its commitment to tackling inequality head-on, Greater Cambridge Impact aims to attract additional funding and partners, multiplying its reach and impact across the region.

This bold step represents a new model for reducing inequality, leveraging collaboration, innovation, and long-term thinking to create brighter, fairer futures for communities across Greater Cambridge.

Mayor Dr Nik Johnson said: “Partnership working is crucial to getting to the root of some of our most entrenched inequalities. This fund is the kind of innovative, ambitious thinking we need to create opportunity for the public, private, voluntary and third sectors to collaborate on improving life chances. I want to encourage local businesses, individuals and other organisations to find out how they can support this pioneering new scheme.

Cllr Simon Smith, Executive Councillor for Finance and Resources at Cambridge City Council, said: “In July 2023, Cambridge City Council awarded £200,000 of seed-funding to make GCI investment ready and pledged £800,000 to match other funders and investors. The welcome commitment of the Combined Authority not only builds the fund but gives others more confidence to invest. The GCI focuses on tackling the root causes of inequality by supporting solutions that work – from communities, public, private and voluntary sectors – and that can be scaled to benefit as many people as possible.”

Sara Allen, Executive Director of Greater Cambridge Impact, said: “I’m so delighted that the Combined Authority’s Investment Committee voted unanimously to make this investment. It represents a collective vision for tackling the causes of inequality and demonstrates the support within the region for impact investment. The Combined Authority will bring deep knowledge of the region to the investment decision making. Joint initiatives like this, working across the public and private sectors for the public good, can lead to more effective solutions, foster sustainable development and encourage vital, new thinking.