1. Social Impact Bonds & Local Integrated Service Trust (LIST) Tom Flanagan Corporate Director EPE 26 September 2011

2. www.cornwall.gov.uk Growing a Social Investment Market “Britain needs new ways of tackling some very stubborn and expensive problems such as fractured communities, homelessness and high rates of re-offending. Social entrepreneurs and the social ventures they lead bring innovative solutions by combining social mission with sustainable business models.” Cabinet Office – February 2011

3. www.cornwall.gov.uk Annual Operational Budgets vs Long-term Multi-Agency Investment in Prevention A Potential Value For Money Solution! In Cornwall we have the opportunity to: Build on an innovative social enterprise culture Explore the opportunity of Social Impact Bonds Create a Local Integrated Service Trust (LIST) A LIST that will facilitate Social impact Bond Funding

4. www.cornwall.gov.uk

5. The Local Integrated Service Trust

6. www.cornwall.gov.uk

7. Social Impact Bond – Key Criteria Raise minimum of c£5m investment Based on agreed Intervention/Diversion Strategy Agree timescale for success criteria Have confidence in chosen metric(s) over 5 years Require a public sector contracting party Agreement with established social enterprise Could apply to arms-length wholly-owned companies

8. www.cornwall.gov.uk Cautious Optimism New idea, new language, new thinking This sounds great – can we make it happen? Concerns around the following:  What is the financial case?  Motive of investors?  Low risk – yes, if we get the business case correct!  Will it be able to support our challenges/priorities?

9. www.cornwall.gov.uk Peninsular Discussions - Progress to Date Potential Areas of Benefit - Children’s Services  In Families  In Care Offender Management  In Prison  In the Community Health  Infrastructure & Non-Clinical  Clinical Worklessness  NEETS  Adults Waste/Landfill/Recover-Reuse-Recycle

10. www.cornwall.gov.uk Peninsular Discussions - Progress to Date Proposed Work Streams - Children’s Services (Torbay) Recession – Impact on Young People (Plymouth) Offender Management (Torbay) Health - Telecare & Non-Clinical (Cornwall) Health - Clinical (Devon) Worklessness (Cornwall) Waste/Landfill/Recovery (Cornwall)

11. www.cornwall.gov.uk Next Steps Engage with our partners & stakeholders Identifying appropriate social issues for SIB/LIST Creating Intervention & Diversion Strategies based on current work streams Intervention/Diversion Strategies – lead to Business Case Research preferred options with funders/intermediaries Develop Cornwall (Peninsular) Funding Model

12. www.cornwall.gov.uk New Money Better Social Outcomes What is everyone’s motivation New way of working New Thinking The languages of high finance & public sector meet up Can we afford it Additional Money Supporting our priorities? Virtuous circle Is it too good to be true? Low Risk Caution & Optimism Questions & Discussion