Kruger among MPs calling for £25m community development investment

A group of Conservative MPs are urging the government to inject £25m into the community development finance sector.

Community Development Finance Institutions (CDFIs) help small businesses and social enterprises to access finance to support communities often in deprived areas.

They are not-for-profit lenders that provide finance with a focus on sustainable job creation, helping areas of deprivation and lending to BAME and women led businesses.

The MPs backing the cash injection for community /investment include Danny Kruger, author of the Levelling Up Our Communities report into the future of charities, and former Conservative Party leader Iain Duncan Smith.

Also backing the proposal, put forward by Responsible Finance, which represents CDFIs, is Kevin Hollinrake, chair of the All Party Parliamentary Group on Fair Business Banking.

Responsible Finance is calling for historic European Union funding of £25m to be replaced by the government.

They are also calling for high street banks to provide match funding to CDFIs.

Duncan Smith said: “Greater support for CDFIs from government and banks will ensure businesses have access to a wide and diverse variety of funding as they rebuild, so entrepreneurs and the jobs they support can thrive once more.”