Third Department Office

In 2006 Tony Blair merged all social enterprise divisions subordinate to cabinet ministries in charge of commerce and industry to form, under the Cabinet Office, the Third Department Office, which was charged with centralized promotion of social enterprise development. Although David Cameron set up the Office for Civil Society after taking office in 2010 to replace the Third Department Office, he has largely retained the existing policy direction and has since released Growing the Social Investment Market: A vision and strategy, as well as expanding social investment and public welfare venture capital activities and activating social enterprise development. The following are brief descriptions of several landmark events: 1.　UnLtd, a foundation that focuses on the development of individual social entrepreneurs, was established in 2000. 2.　In 2001 the British government set up the Social Enterprise Unit under UK Trade and Industry (UKTI). 3.　In 2002 the civil organization Social Enterprise Coalition (later renamed SEUK) was established. 4.　In 2005 Community Interest Companies (CIC, pronounced "kick") was established through legislation. 5.　In 2009 a social enterprise investment fund with assets totaling ￡1 billion was established to invest mainly in start-ups？and existing social enterprises providing healthcare and general care services. 6.　Funded with unclaimed assets from dormant accounts at financial institutions and with investments from four major banks, namely HSBC, Barclays, RBS and Lloyds, Big Society Capital has total capital amounting to ￡800 million and represents major financial power in support of the implementation of "Big Society" policies. 7.　The Public Services (Social Value) Act was enacted in 2013, and regulates how government procurement should take into account the three basic principles advocated by social enterprises to improve social, economic and environmental well-being and assess impact, thus encouraging the private sector to create social value on its own initiative. Looking back at the history of policy development in the UK, it shows that the initial focus was on fostering talent development and expertise as well as on advocating relevant ideas and concepts. The next step was to create a favorable legal environment for the development of social enterprises. Finally, the government took the lead to make available a large supply of funds to create a social investment market and develop a variety of innovative investment tools, such as Social Impact Bonds. This has reshaped the government's procurement practices and provided social enterprises with a friendlier environment with its multi-pronged approach to create an economy of scale effect for social enterprises. The hierarchy of competent authorities in charge of policy is as follows: a supervisory unit is set up under the economic department, with the Third Department Office formed under the Cabinet Office taking charge in the medium term; and at a later stage the Office for Civil Society, which falls under the direct supervision of the Deputy Prime Minister. This provides a window into the process of transformation and elevation of social enterprises from an important area of economic activity in the UK to becoming the core of the government's social and economic policies. From the time when Tony Blair's Labour government was in power with Anthony Giddens acting as adviser, to the current coalition government led by the majority Conservative leader David Cameron, in which no political party has an absolute majority in Parliament, the country's social enterprise policies have been successfully integrated with the campaign platforms of major political parties. These policies have been implemented and brought to fruition regardless of the political party in power, and thus the experience has been preserved and is able to be passed on to future generations with reflection and innovation. In the UK, the focus is on accommodating social enterprises of many different categories as much as possible within the legal system, and social enterprises have always been defined by policy only and without a clear legal definition. This is conducive to the development of social enterprises, as the practice helps to remove the parochial attitudes and prejudices of all competent authorities involved, allowing all relevant government agencies to willingly cooperate and coordinate with one another and carry out their responsibilities. The government has taken a leadership role to consider carefully what the needs are in social development, emphasizing division of labor, cooperation, proactive innovation and other important elements in its governance. After more than a decade, innovative social investment instruments, such as Social Impact Bonds, have finally become a reality in the UK, which is a key foundation that other advanced countries are seeking to emulate.