BBV Chief Executive Paul Davidson has been appointed as one of the founding board members of a new National Association for Community Development Finance.

The new body, which was launched by Paul Boateng, Financial Secretary to the Treasury, aims to bring a common voice to the national debate about finance-led strategies to "combat poverty, create economic opportunities and ensure inclusive prosperity."

Community Development Finance Institutions supply capital and business support to individuals and organisations whose purpose is to create wealth in disadvantaged communities or underserved markets.

BBV (Bolton Business Ventures) is the local enterprise and development agency.

It has been involved in the delivery of community development and microfinance loan funds for the last 17 years.

Mr Davidson said: "I am delighted to be joining the board of the new association at a time which marks a watershed for community development finance in the United Kingdom.

"The recently announced tax credit is designed to generate over £1 billion into social enterprise."

He added: "We are on the brink of something momentous and exciting, with an age of entrepreneurship committed to social change and justice."

The CDFA will help its members become eligible to offer potential investors a community investment tax credit to support enterprise in deprived areas.

The tax credit, which will be part of a Finance Bill due to go through Parliament later this year, will give individuals and private companies a 25 per cent discount on investments made to accredited Community Development Finance Institutions over five years.