The Combined Authority has agreed to give £1 million in funding towards a new project designed to support disadvantaged communities in the county, prevent homelessness and tackle educational inequality.
The project, called Greater Cambridge Impact, is aiming to raise £10million in total to help tackle inequality, especially around education, social mobility, health and homelessness.
Mayor Dr Nik Johnson. Picture: Keith Heppell
It will invest in charities, social enterprises and community interest companies using mechanisms such as equity investments and loans, while working closely with local government.
Returns from local government investments will be reinvested, in a bid to ensure 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.
This was added to after the Combined Authority’s investment committee committed to funding on 16 December and marks the first steps towards the £10million target.
Combined Authority 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 city councillor for finance and resources, 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.”
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.
It is a 10-year impact investment vehicle that aims to build £10million to address systemic inequality and contributing to good growth in the region.
The intention is to leverage private and philanthropic funds to invest in scalable partnership projects across the voluntary, community and social enterprises (VCSE) and public sector, delivering social innovation that gives better access to opportunities for the most disadvantaged in Cambridgeshire.
The initiative will be managed through a joint venture company, with the Combined Authority holding a seat on the board.
This will ensure that investments are aligned to the region’s priorities for reducing inequality and driving “good growth”.
Sara Allen, executive director of Greater Cambridge Impact, said: “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.”