News

New guidance attempts to stop local authorities from cutting disproportionately

Finance | Gareth Jones | 2 Sep 2011

Local authorities should not make cuts to the voluntary sector that are larger than those they are experiencing themselves, according to new guidance issued today.

The Department for Communities and Local Government (DCLG) said that the communities secretary Eric Pickles had issued the refreshed, simplified guidance to local authorities in order to try to prevent them from making disproportionate cuts to the voluntary sector.

The guidance states: “Authorities should seek to avoid passing on disproportionate reductions - by not passing on larger reductions to the voluntary and community sector and small businesses as a whole, than they take on themselves.”

The DCLG added that in deciding how to fulfil their 'Best Value Duty', councils will be required to consult those using, or likely to use, a local service, including community and voluntary organisations.

Elsewhere the provisions state:

• Organisations should be given three months’ notice if their funding is to be reduced or ended;
• Councils should involve and discuss their plans with the organisation and local service users as early as possible before making any final decisions; and
• Organisations should be given the chance to reshape or reduce the costs of the service provided.

Central government departments have already signed up to these same principles, according to the DCLG.

“Fair deal”

Pickles said community and voluntary groups “deserve a fair deal”. He added: "That's why I'm introducing new guidance on councils to consider how they fulfil the Best Value Duty for their communities, not just in stark money terms but also in terms of the wider benefits to residents above and beyond the services that these organisations provide.

“And in return, I'm cutting reams of red tape that in the past have hampered council efforts to get their important work done.”

Responding to the announcement, Sir Stuart Etherington, chief executive of NCVO, said: “When local authorities are looking to make cuts it is important that they engage with the voluntary and community sector in a considered manner and not just as a tick box exercise.

“Last year councils were asked to make decisions within a very short and urgent timeframe and this year they have an opportunity to do so in a much more measured and meaningful way.”

Tweet

Directory: National Council of Voluntary Organisations (NCVO)
Who's Who: Sir Stuart Etherington