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Greater service delivery role promised but cuts start to bite 3

Finance | Vibeka Mair | 26 May 2010

The Queen’s speech yesterday reinforced the new government’s commitment to give civil society an enhanced role in the running of public services.

Number 10 has confirmed that where appropriate, services markets will be opened up to allow social enterprise, charities and co-operatives to bid to run public services.  Barriers to involvement will be identified and measures will be implemented.

Hannah Terrey, head of policy and public affairs at Charities Aid Foundation said: “We are encouraged by the Queen outlining plans to enhance the role of social enterprises, charities and co-operatives in public services. We look forward to seeing the detail and hope that these measures will take forward the Conservative commitment to making it easier for charitable organisations to operate and work with the state,” she said.

CAF added that further assistance could be provided by the implementation of the recommendations of the Final Report of the Commission on Scottish Devolution, which include recommendations for single charity registration and common definition across all countries.

“This would significantly ease the bureaucratic burden for charities which operate across the UK. The government is already making good on some pre-election promises and we hope this will continue.”

Her Majesty also said that there would be major overhauls for Britain’s political system, welfare state, schools and police.

Prime Minister David Cameron hopes to bring 22 Bills before Parliament over the next 18 months.

Cuts start to bite

However, the strategic partners of the former Office of the Third Sector will be watching closely to see where the Cabinet Office wields the axe on the £79m worth of cuts sent its way by Chancellor George Osborne on Monday. CAF’s Hannah Terrey said £79m might be considered modest in comparison to cuts in other departments, but it is “significant relative to the total departmental budget”.

“Given the government’s ambitious new ‘Big Society’ agenda, and the central role that civil society is to play in this, it is important that the new Office for Civil Society is effectively resourced,” she said. 

Future Jobs Fund to end

The £1bn Future Jobs Fund, an employment programme for young people that was devised by Acevo, is also heading for the scrapheap from March next year, though the government has committed to honour the grants for the 60,000 work placements already funded.

Acevo’s chief executive Stephen Bubb said the government’s description of the Future Jobs Fund as “ineffective” was “quite unacceptable”.

“Given the relative newness of the scheme and the fact that it is ongoing how is it possible to make an objective decision on effectiveness of the scheme?

“Perhaps those in DWP who were responsible for this description should reflect that in so doing they have insulted many great social enterprises, charities and community organisations who have provided a professional dedicated service that has put young people in work.”

DfID reprioritisation sees cuts for some charity projects

Other charities are feeling the brunt of a re-prioritisation of funding by the Department for International Development.  Several UK-based projects have had contracts cancelled after the new Secretary of State, Andrew Mitchell, reportedly said he did not believe these projects give the taxpayer value for money.

These include a £146,000 grant to the Arcola Theatre Production Company, £130,000 for the Global Gardens project in schools run by Reading International Solidarity Centre, and development training for outdoor educators in Cumbria and nursery workers in Scotland.

While DfID money is not subject to cuts, its funding having been ring-fenced, it appears the new government has redirected some of the funds.  Some of the charities that have lost out have reportedly asked for an explanation as to how the decisions were arrived at, and there are grumbles that the Compact has not been adhered to.

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Directory: Association of Chief Executives of Voluntary Organisations (ACEVO) | Charities Aid Foundation
Who's Who: Sir Stephen Bubb