2024 in Review

One of the common observations made of social investment led business is they lack capacity to cultivate higher growth ventures and struggle with under-representation among certain demographic groups.

Kindred’s profile, where 50% of our supported socially-trading organisations are led by women and 25% by people from Black and ethnically minoritised groups, demonstrates that we are bucking the trend. Regarding higher growth, there are ventures we invest in that demonstrate pathways to growth and loftier ambition are attainable.?

Another pleasing feature has been the transition from an predominantly Liverpool City (920k pop) story to one that incorporates the wider Liverpool City Region (1.6m pop).

While Liverpool may remain the epicentre, the impact made in St Helens, Wirral and Knowsley bears testimony to the energy and creativity of local people, but also the engendering of trust and confidence of local stakeholders.

Notable successes include a significant role in the regeneration of St Helens town centre, new solutions to tackle dementia in community settings in Knowsley and a maker-led culture leading the way across the River Mersey.

Inevitably success increases visibility and profile. Last year saw the launch of the Adebowale Commission report into social investment and, while I share the findings and sentiments expressed, it was pleasing to recognition of the work in the Liverpool City Region.

However? delighted we are to receive such plaudits, we have always maintained any success of a transformative nature must be inextricably linked to similar growth in other regions across the United Kingdom.

More widely, it has led to conversations and opportunities internationally to share experiences and learning. To be in the company of some many great people and projects globally is comforting as well as awe inspiring.

One of the main takeaways has been recognising there is no single preferred answer to measuring impact – and that there should not be a single standardised tool as too often a single metric can miss the point.

What is indisputable is the global appetite and capacity for impact investment is on an upward trajectory, regardless if one is a corporation seeking to comply with the rules of the market (ESG) or not-for-profits and the state leveraging resources outside traditional spheres.

Regardless of location, the important principle is understanding that we are part of a movement drawn from across business, industry, government and independent sectors, using the power of the collective to cultivate alliances to convene partnerships, coalitions and networks towards collaboration. The operating environment context for this is important.

The UK Government is committed to continue the work of its predecessors. The UK Government addressed social investment in the Budget by referring to a social investment vehicle to mobilise private investment to deliver positive social impact.

The aim is to tackle complex social problems by aligning capital, and synchronising with its mission-led programme for government.

The ‘mission’ provides a basis to create opportunities to generate unique projects where social investment can help meet economic productivity, notably in strategic areas such as energy, housing, health, water management and cooling and heating system.

But this will require innovative funding structures, new modes of governance and consideration to reviewing aspects of regulatory functions.

It will also need new relationships borne of pragmatism to leverage shared knowledge, capital and networks. In this spirit, we should acknowledge the diverse types of capital each of the different partners bring to the table, while recognising their unique strengths and roles in the multi-capital collaboration.

As for the narrative, we might want to consider shifting from the overused terminology of ‘public services reform’ and the oft banded ‘social innovation’. Instead the language should be about amplifying narratives around a new economic system to build support for change.

Given Sir Keir and Rachel will be poring over every word, the message is clear: create the conditions and we can help to generate new engines of systemic growth and resilience to build an inclusive, prosperous economy.

We are excited to see what 2025 brings – and proud of the role that our community of socially-trading organisations plays in this.

- Jas Bains, Chair