Reeves can boost growth without spending money

The chancellor should follow the example of Tony Blair and harness the third sector's energy, writes Chris Blackhurst

- Chris Blackhurst

Repeatedly, we hear Keir Starmer and Rachel Reeves are putting pressure on ministers and departments to generate ideas for economic growth.

So, here is one: the third sector. Start using the civil society, as it's also called, to its full potential, to drive the economy. A new report from the Gradel Institute of Charity at Oxford University, A Third Way of Doing Growth, makes a persuasive case for a fresh look at this frequently ignored national resource.

Research by Pro Bono Economics for the study suggests the third sector creates at least £39.5bn of economic value a year if volunteer hours are factored in - and well over £100bn if the full economic contribution by the sector is assessed. Adds the report: “Statistical evidence also shows that there are many persistent societal challenges that the third sector can often tackle more effectively (and therefore more cost-efficiently) than the public or private sector alone.”

So, a win-win. Stephen Bubb, executive director of the Gradel Institute and a former head of the charity leaders’ representative body, Association of Chief Executives of Voluntary Organisations, argues that a huge opportunity is being missed. “The government should think about the third sector and how they can harness its energy and strength,” he says.