Croydon Council creates £350,000 transition fund to appease anger over £1.2m cut

Finance | Vibeka Mair | 14 Jul 2010

Croydon Council has created a £350,000 transition fund to help charities who will lose funding when it starts cutting £1.2m from its voluntary sector budget in October.

Last night, Croydon Council ratified a 66 per cent drop in funding for the voluntary sector over the next four years at a town hall meeting.

There were scenes of anger outside as more than 120 volunteers protested against the swingeing cuts.

Out of 47 organisations previously funded through the Council’s corporate funding budget only six will get £625,000 worth of council grants through the Stronger Community fund which has replaced it.

A £350,000 transition fund is planned for those who will lose funding.

Councillor Vidhi Mohan, cabinet member for communities, told the meeting: “This is a radical new approach to the council relationship with the voluntary sector.

“We have been consulting with the voluntary sector for the past few years on this.”

However, Councillor Louisa Woodley, shadow cabinet member for the voluntary sector, said: “This transition fund is nothing more than a complete smokescreen to deflect some of the anger people feel.

"It is a sticking plaster to help groups wind up, they are still going ahead with the cuts. These cuts will have a devastating effect on the community at the time when they most need voluntary services.”

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