Why businesses are a crucial component in tackling social challenges

Westminster is shifting, and for anyone serious about tackling social challenges through enterprise, this moment matters. The Purpose Coalition is at its strongest when policy direction aligns with what purpose driven businesses are already proving on the ground. Our latest Leadership Advisory Council, bringing together senior figures from a range of sectors, showed that alignment is tighter than ever, creating an opportunity to influence how government thinks about growth, fairness and the role of employers in strengthening communities. 

The Budget on 26 November will set the tone. Ministers are talking about renewing Britain through long term investment in infrastructure, housing, skills and the NHS, yet they face weak growth, high borrowing costs and very limited fiscal headroom. That combination tells its own story. Ambitions are high, but public spending alone cannot deliver them. This gives impact-led organisations the chance to step forward as credible partners in areas the government has identified as priorities. 

Fiscal decisions on housing, energy support, skills, transport and infrastructure will shape demand for services in left behind places. Changes to pension rules, capital gains or impact related tax incentives will affect how easily purpose driven businesses can attract patient capital. With Treasury spending power tight, it is more important than ever to show that impact driven businesses are not a luxury. They are essential contributors to productivity and fairer outcomes. This Budget is a moment to make that case clearly to Treasury, No10 and the new Office for the Impact Economy. 

The Coalition’s partners are already demonstrating what this looks like. E.ON’s Warmer Homes Discount Scheme is cutting household bills and improving living conditions at scale. Robertson and Curtins are showing how engineering and construction can embed opportunity into the fabric of local economies, creating long-term social value. Barclays’ work on financial literacy is helping to reduce the UK’s poverty premium and give households more control over their finances. These are practical blueprints for the type of growth ministers say they want to see. 

The Keeping Britain Working Review adds another layer of opportunity. With over one in five working age adults now out of the labour market, largely due to ill health or disability, the Government has accepted the central conclusion of the Mayfield Review: employers are critical to reversing the rise in economic inactivity. This is no longer just a question of welfare or NHS reform. It places employers at the centre of designing jobs, supporting people with long term conditions, investing in workplace health and building inclusive cultures. 

Purpose-driven employers have been leading this agenda for years. Flexible jobs, good management practices and inclusive recruitment are long-established strengths. That means our partners have a credible voice in shaping how the Review’s recommendations are implemented. The Wise Group’s work on supporting people furthest from the labour market shows what high quality, personalised intervention looks like. TP is shaping a practical approach to wellbeing that reflects the realities of modern workplaces. This is the kind of evidence government needs to turn a policy direction into delivery. 

Perhaps the most significant institutional shift is the creation of the Office for the Impact Economy in the Cabinet Office. Designed as a single-entry point for impact investors, philanthropists and purpose led employers, its mission to unlock billions in capital for communities and public services. That could reshape how social value is financed and scaled, connecting proven models on skills, health, housing and levelling up with mainstream public funding and private investment. The Purpose Coalition can position itself as a strategic partner, bringing investable projects, real world data and a network of employers capable of delivering impact at scale. Sodexo’s work on setting the standard for social impact in procurement across both public and private contracts is a strong illustration of what a clear, measurable framework can achieve. 

The transfer of apprenticeships, adult learning, skills, training and careers from the Department for Education to the Department for Work and Pensions is another significant shift, with the Government signalling a sharper focus on linking training directly to real jobs. In principle, this makes it easier to design programmes that combine employer demand, workforce development and employment support. Yet it also introduces uncertainty. Funding routes and accountability will change and organisations delivering frontline skills and inclusion support must adapt quickly. Our partners are already working at the intersection of skills and employment, running apprenticeships, pre-employment programmes and local initiatives that reach people facing the toughest barriers. Their experience will be invaluable in helping the new system serve those who need it most. 

These developments show a consistent direction. Government expects business to be an active partner in tackling deep social challenges. Not a bystander, not a taxpayer with views, but a delivery partner. The Purpose Coalition is uniquely placed to help shape that agenda, grounded in what actually works in communities, workplaces and supply chains across the UK. This is a rare window to influence the national conversation. Business and government are looking for the same thing: practical solutions that strengthen the country. Now is the moment to step forward and deliver them.

- Nick Forbes CBE, former member of Sir Keir Starmer’s Shadow Cabinet and Chair of the Breaking Down Barriers Commission.