Former Labour MP Hazel Blears has been appointed chair of the Social Investment Business, the UK's largest frontline social lender, succeeding Acevo chief executive Sir Stephen Bubb who steps down in April.

Blears was MP for Salford from 1997 to 2015 before stepping down at the last election. During her eighteen year political career, she served as secretary of state for communities and local government, public health minister and chair of the Labour party.

She was actively involved with charities and social enterprises throughout her career – including as a champion of the Social Value Act and as a member of the advisory board of social investment wholesaler Big Society Capital. She has also campaigned for improvements to dementia diagnosis, care and awareness.

In a statement today, Blears said she was “extremely proud” to succeed Bubb as chair of the organisation and was “excited” to start working with the team at SIB.

“The Social Investment Business has a fantastic record of helping charities and social enterprises access the finance they need to deliver services in their communities,” she said.  
“Social investment has enormous potential to help us tackle some of our biggest social challenges, such as improving dementia care, and I am determined to make sure money can go where it is needed most.”

Bubb said he was “delighted” that Blears was brought in as his successor.

“I can think of no-one better to lead the Social Investment Business into the next decade,” he said. “The third sector faces huge financial problems at the moment and social investment is one way of funding vital work.”

“However, we are also at a crossroads. Social investment needs to be simple, relevant and affordable. We have moved away from funds like Futurebuilders whilst too much emphasis has been put on more complex and expensive models and structures. We must address this to avoid social investment becoming an irrelevance to many in the third sector.”

Bubb joined SIB in 2006 and steered the organisation to become one of the UK’s leading social investment specialists, managing both grant and loan funds to help charities and social enterprises increase their impact.

Some £388m has been distributed by the organisation in the form of loans and grants since 2002.

Further appointments SIB’s board will be announced next month.