Call for social investment tax reliefs

The government should provide new tax reliefs to encourage greater investment in businesses which benefit society, an expert has claimed.

Nigel Kershaw, chief executive of Big Issue Invest - the investment wing of the Big Issue magazine - claimed it was imperative that the Treasury rewards those who back social enterprises, businesses which plough all or the majority of their profits into social or environmental causes.

Pointing out that investors in traditional businesses can claim a whole raft of tax reliefs, Kershaw said because the same is not available for social investments, many people are put off from getting involved.

"Lets make social enterprises the equivalent of young innovative SMEs," he told delegates at Tuesday's Good Deals conference in London. "We know our market and how to make change happen but there is no incentive to invest in us while we sit between business and charity."