By Mark Shearer, Co-Founder and CEO of ActionFunder
As I settle into my train journey back from Liverpool to London, after a superbly hosted LCA and Opportunity London dinner, ahead of the Labour Party conference, I wanted to share a few reflections on where local leadership and social impact might be heading.
For context, it was an interesting room: one UK cabinet member, two deputy mayors of London, 14 council leaders, the TFL commissioner, and a mix of business leaders. Setting politics aside, it was essentially a gathering of key decision makers in the London arena.
I was there very much as a “tech for good” founder (albeit one with a background as a Conservative councillor in Westminster). And what struck me in almost every conversation was how much people were looking at tech as the opportunity – the lever to improve outcomes and increase efficiencies.
Like all good presentations, I’ll boil down my reflections into three takeaways:
1. Council leaders – a new generation
It was refreshing to meet many young and ambitious council leaders. Many were under 50, some under 40, and some had no family background in politics. What they all shared was a passion for their role and a genuine sense of responsibility for their communities.
Local politics has a huge impact on people’s daily lives, arguably more so than national government. And, I hope the latest generation of leaders across all parties will play an increasingly vital role in maintaining the quality of life in their communities.
2. The fair funding review – winners and losers
The fair funding review (FFR) has finally been presented to councils. It’s a cross-party mechanism that seeks to rebalance almost £2bn of local authority funding from government, with the aim of increasing support in the areas that need it most.
The reality is that there are winners and losers. Central London boroughs will be hit hard, in some cases very hard, while some outer London boroughs will see a net increase in funding.
Most voters won’t be aware of the FFR or its impact on budgets, but they will feel the consequences in everyday services. And that brings me to my final point.
3. Privately funded social impact – plugging the gap?
Councils under more financial pressure are increasingly looking to plug at-risk services through forcing increased social value via their procurement. This dynamic has been strengthen by the Procurement Act revisions and Social Value Act – and a recent Tussell Report says it all (page 14). There has been a 10x increase in the phrase “social value” in public sector tenders when comparing 2024 to 2025.
I use the word “forcing” above deliberately – because that is what is happening. Should “private sector UK” be propping up “public sector UK”? In my mind it’s a balance. I am a firm believer that companies can and should deliver wide ranging social impact – especially when it is financially beneficial (because it’s a win-win) – but I also believe that any delivery of these funds should be efficient, transparent and delivered with less bureaucracy. In other words, I think it depends on how effectively the money is spent.
Looking ahead
We’re at a moment of caution, problem-solving, and realism – an acceptance that the public purse can’t stretch to meet all the social needs of UK communities.
My hope (actually, my expectation) is that politicians across all parties, will see the value in harnessing innovative tech like ActionFunder to drive impact in the right way and to encourage the corporate purse to play its part.
