Nick Hurd, minister for civil society, has voiced concern about the charitable sector’s "creeping dependence" on the state and says the government will not let charities become "semi-attached agents of the state".
Hurd (pictured) was responding to a blog by fellow Tory MP Tim Montgomerie who raised concerns that too many charities had become dependent on income from the state. Montgomerie called for a switch from direct grant funding to matched funding incentives, whereby taxpayers' money follows the choice of citizen.
Hurd, writing in a blog entitled We don’t want charities to become dependent on the state, said the "creeping dependence" of the charity sector on the government was a concern for those who believed in the independence of civil society:
“Public sector income has grown from £8bn in 2000/01 to £12.8bn in 2007/08. As a result, the state now represents 36 per cent of the sector’s income – on a par with income from individuals.
“It is also true that resources within the sector have become more concentrated with over 70 per cent of total income now going to organisations already earning more than £1m in income.
“This combination of creeping dependence and growing concentration should concern those of us who believe that the value of civil society lies in its robust independence and diversity," he said.
Hurd continued that while the coalition government was explicitly committed to making it easier for charities to participate in public service delivery, he maintained that problems came with not recognising “the risk of over-dependence”.
He also criticised the former Labour government for creating an "inefficient funding environment for charities".
“Under Labour, public money was chucked about with very little transparency and too little rigour in establishing exactly what was being bought,” said Hurd.
“Instead of focusing on outcomes, refuge was taken in micromanagement of process. Labour talked about a social investment bank for ten years without delivering it. The result is a very inefficient funding environment for charities.”
Hurd ended his blog by insisting the government did not intend to let charities become "semi-attached agents of the state".
