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National Lottery Bill

moved Amendment No. 21:"Page 8, line 4, at end insert—" ““(   )   The value of loans made under subsection (1) must not exceed the value of grants made under that subsection.”” The noble Lord said: From these Benches we welcome the new power to make loans afforded to the Big Lottery Fund in Clause 14. Loans can be an important part of the sustainable funding mix for voluntary and community sector organisations, for example, by allowing organisations to buy a building that they can then hire out to generate revenue. The recent report from the Home Office-backed futurebuilders fund demonstrates that there is an appetite for loan finance among voluntary and community organisations. An organisation of which I am chairman is taking advantage of a futurebuilders fund loan in that way; I declare an interest in that respect. The report shows that more than 70 per cent of the investees—those to whom futurebuilders loans money—had never taken on loan finance before. However, one of the key strengths of the National Lottery during the past 11 years has been its role as a large grant-maker. It has provided different types of grants to meet the diverse needs of the voluntary and community sector and made a difference to communities across the United Kingdom. That is increasingly important at a time when most government funding for the sector is through public service contracts and when contributions from the public are declining. The amendment would ensure that the Big Lottery Fund remains primarily a grant-maker, albeit with the power to make loans where appropriate. I beg to move.