Work by the government to develop a social impact investment vehicle is “hugely significant”, according to the social investment body Better Society Capital.

Rachel Reeves, the Chancellor of the Exchequer, presented her first budget to the House of Commons today.

Documents released alongside the Budget speech showed that the new social impact investment vehicle would “bring together socially motivated investors, the voluntary sector and government to tackle complex social problems”. 

It will be led by the chief secretary to the Treasury, working with the Department for Culture, Media and Sport.

Little detail is available at this stage but the vehicle will be designed and developed through engagement with the sector, with further details to be announced at phase two of the Spending Review next year, Treasury documents show. 

Robin Hindle Fisher, chair of Better Society Capital, said: “This announcement is a hugely significant one.

“We have seen through the growth of the social investment market the value that impact-aligned capital can provide to tackling complex social problems at such a critical time for the UK.  

“We stand ready to work with the Treasury and DCMS to ensure that impact capital fulfils its full potential in changing lives for those that need it.”