Downing Street used 11 November 2025 to confirm a new Office for the Impact Economy in the Cabinet Office. The unit, led by Chief Secretary to the Prime Minister Darren Jones, is intended as a single contact point for investors, philanthropists and purpose‑led firms to co‑fund local projects across the UK.

Ministers describe the impact economy as investment that targets both returns and measurable social outcomes. The Social Impact Investment Advisory Group’s final report estimates the UK market at around £106 billion, and the government says the new Office will reduce duplicated processes so capital reaches deliverable schemes faster.

Operationally, the team will work across DCMS, HM Treasury, the No10 Partnerships Unit, the Office for Investment, devolved administrations and the Department for Business and Trade. It will also coordinate with the Office for Investment’s impact capital function, which engages large pools of capital.

The timing lands alongside a growing pipeline. On 20 October 2025, Legal & General set out a £2 billion impact investment plan to 2030 aimed at affordable homes, regeneration and infrastructure, estimating about 10,000 social and affordable homes and 24,000 jobs. The announcement came ahead of the first Regional Investment Summit in Birmingham and aligns with the Sterling 20 initiative of major pension providers.

Ministers also point to the Better Futures Fund as a working example. Announced on 14 July 2025, the £500 million, ten‑year outcomes fund aims to support up to 200,000 children and families while drawing in a further £500 million from local government, social investors and philanthropy. Treasury and DCMS describe it as the largest of its kind globally.

The Office is a direct response to the SIIAG final report, published earlier this month. The report called for a clear front door for partners and targeted changes such as clarifying pension fiduciary duties and improving transparency on corporate giving to bring more private capital to national priorities.

For investors, the value proposition is straightforward: co‑investment alongside public money, outcomes‑based contracts where appropriate, and place‑based regeneration where councils can offer planning certainty. Large asset owners are likely to interface via the Office for Investment, while philanthropists and corporates get a Cabinet Office route to co‑design programmes.

For councils and SMEs, a functioning front door can shorten procurement cycles and help bundle smaller projects-home retrofits, community health services, local innovation hubs-into investable mandates. SIIAG highlights examples such as the Everyone In pilot that funded over 1,000 homes for rough sleepers and Abundance’s local climate bonds exceeding £150 million.

We’ll be watching whether the Office publishes a cross‑government pipeline, standardises how outcomes are measured, and brings community organisations in early. The Cabinet Office says the unit will be designed with impact‑economy groups over the coming months, so early clarity on process will matter.

Bottom line for finance directors and trustees: if your business can evidence outcomes in housing, skills, public health or net zero, expect more blended‑finance mandates and multi‑year commissioning. Construction and retrofit supply chains, social landlords and training providers look first in line as capital starts to move.