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Assistance to Communities

My hon. Friend touches on a fundamental point: accountability to whom. At the moment, as we know, local authorities feel a tremendous sense of accountability to Whitehall. With the devolution of power, the basis of accountability will shift to the communities that they serve. Transparency is an important tool in that process. I would like to make a final point about money, which we have not really touched on. Above all else, the sector needs money, because demand for its services will always outstrip supply. As various hon. Members have mentioned, the recession has proved a particularly demanding environment for the sector when accessing money. I see the situation relatively simply, in that there are three main sources of money for the sector. First, there is public sector money from the opportunity to deliver services. That amount has grown and will continue to grow, because the sector's share of the cake will grow, even if the cake shrinks. Secondly, there is philanthropy, which has struggled to make progress, and we have said that we need a concerted effort to deliver a step change in cultural attitudes to giving. The third pillar is embryonic and small, but it has fascinating potential. It is called social investment, and it is money from sources that are prepared to consider a blend of traditional financial return and social impact. That source is worth about £1 billion, but it could be worth a great deal more. We see an opportunity to connect the social entrepreneur with the strategic capital. At the moment, they are disconnected and speak different languages. For the market to grow, we need a strong intermediary that can make the connection and create the financial products that make sense for mainstream capital.