The charity chief executives body Acevo has called on the Treasury to release the £40m of government funding promised for the Local Sustainability Fund.
Writing to the Chancellor George Osborne ahead of the Autumn Statement, Sir Stephen Bubb, chief executive of Acevo, says it is essential that the government works with the sector to deliver services differently and more wisely.
In the letter, dated 11 November, Bubb writes that “a vibrant economy needs an active third sector” and urges the government to recognise this in its Autumn Statement.
He says that Acevo welcomed news earlier this year that the Office for Civil Society had gained backing from the Treasury for a new Local Sustainability Fund to help voluntary sector organisations struggling financially due to years of local authority cuts.
“We now need the Treasury to release the funding and deliver,” Bubb says.
The letter comes after reports that the Treasury has asked civil servants to find an extra £25bn-£30bn in cuts to departmental expenditure over the next Parliament.
In a statement released to coincide with his letter, Bubb said: “Should government cuts continue as planned, demand on charities, community groups and social enterprises will inevitably soar. Acevo’s 2014 Social Sector Tracker survey showed 89 per cent of charities expect rising demand for their services in the next year, but only 32 per cent feel confident of meeting this demand.
“The Treasury must urgently release the £40m funding the government promised earlier this year in the Local Sustainability Fund. This will unlock the power of small and medium-sized charities to give vital support to those most in need.
“Every day charities do sterling work as Britain’s crisis managers, supporting the most vulnerable people and providing the nation’s other safety net when government cuts spending. But they cannot do this indefinitely – in the long term local and national government must celebrate their value and protect their financial sustainability. The alternative would be disastrous.”
The letter refers to Osborne’s comments to the Institute of Directors in October when he said “plenty of charities” were anti-business.
Bubbs reiterates Acevo’s response that the voluntary sector is “far from anti-business”.
"Many of the estimated 900,000 civil society organisations in the UK are enterprises. They work for social purposes but generate a sizeable portion of their revenue through trade. Many charities have a trading arm," he says.
“A vibrant economy needs an active third sector. Do not let any image you may have of charities get in the way of your doing the right thing. The third sector is essential to putting the care into public services and to reducing demand on the state. We trust that in your statement you will agree.”
