Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 19th June 2013 Commons Chamber

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

The single biggest source of new social finance for charities and social enterprises would be a UK community investment Act that required banks to lend into areas that they are not currently lending into. Why are the Government blocking such reforms?

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

I think that is the first Labour policy announcement I have heard in three years. In answer to the hon. Gentleman’s question, this country is the acknowledged world leader in developing a new source of finance for social organisations. It is called social investment, and it was the subject of a special meeting of the G8 this week, at which everyone stood up and said that Britain was recognised as a world leader in this regard, not least because of our creation of big society capital, which has £600 million on its balance sheet, to make it easier for charities and social enterprises to access capital.

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 6th February 2013 Commons Chamber

[Mr Hurd]

We are doing a great deal. I totally accept what the hon. Gentleman says: there is a lot of pressure on charities in all our constituencies. We all know that there is less money around, but I would like to hear a little more honesty and recognition from the Opposition Benches as to why the cuts in public expenditure are necessary. They are the direct result of the fiscal incontinence of the hon. Gentleman’s party’s Government.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

As the Minister reflects on the capacity of the voluntary sector, he will surely consider in particular the capacity of the Charity Commission—which has been cut by a third on his watch—to prevent charities such as Cup Trust from being used for huge levels of tax avoidance. Is the Minister convinced that the new head of the commission understands the seriousness of the situation, and is a cross-Government plan now in place to prevent such a repeat?

[Mr Hurd]

Yes. Under this Government, we have sent a very clear message to the Charity Commission that we expect it to hunker down on its core responsibility of regulating the sector and protecting its integrity, and, under the new chairman, we expect that to happen.

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 19th December 2012 Commons Chamber

[Mr Hurd]

I join my hon. Friend in congratulating our hon. Friend on doing an extraordinary job in taking that private Member’s Bill through Parliament. I can assure him that we are about to issue the necessary guidance to local authorities.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

With one in six charities fearing that they will face closure next year, after huge cuts in Government funding, and after the promised bonanza of new income from Whitehall contracts failed to materialise, how does the Minister hope that his performance will improve next year?

[Mr Hurd]

I put it to the hon. Gentleman that just as Labour Members talked down the economy for three years, now they are talking down the voluntary sector, which has grown over the past three years. I set him a test of seriousness: will he send a stronger message to Labour local authorities, as the Prime Minister has done, about the need to avoid disproportionate cuts on the sector, starting with Derby?

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 7th November 2012 Commons Chamber

[Mr Hurd]

I am grateful to my hon. Friend for his question. He takes a strong interest in the matter. The Government are ambitious to accelerate the development of social impact bonds, which create the space for commissioners to innovate and try new interventions in that space. We have already announced that we will shortly publish the details of an outcomes fund designed to do exactly that.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Four out of five small charities surveyed by the National Association for Voluntary and Community Action expect their finances to worsen in the next year as Government cuts bite even harder. Is not the truth that the Minister has so little ability to deliver extra funding for small charities’ big society projects that if he were to hop on a plane to Australia to join his hon. Friend the Member for Mid Bedfordshire (Nadine Dorries) in the jungle, nobody in the charity world would notice?

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 5th September 2012 Commons Chamber

[Mr Hurd]

My hon. Friend and neighbour from Harrow makes a good point. Locally, we have the contrast between Conservative-run Hillingdon council, which is increasing its investment in the front-line voluntary sector, and Labour-controlled Harrow next door, where that investment is being reduced.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Ministers’ huge cuts in funding for charities mean that volunteer centres across England are losing, on average, 25% of their income, according to Volunteering England. With so many Olympic and Paralympic volunteers wanting to continue to volunteer after the games are finished, why are Ministers so determined to make it so hard for them to do so?

[Mr Hurd]

We are not. The hon. Gentleman has never let facts get in the way of shameless opposition and he has not disappointed today. We are investing in the infrastructure to support and inspire volunteers, with £30 million for the transforming local infrastructure fund. We are doing our bit from the centre, but the point I would make to local authorities across the country is that they should recognise the value of the volunteers in their community and not cut the investment in the local infrastructure that supports them.

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 14th December 2011 Commons Chamber

[Mr Hurd]

My hon. Friend knows from his lengthy experience in the area that we have fantastic social entrepreneurs in this country, and we want to make it easier for them to access capital, but, as he points out, some of them need more help to become more investment-ready. That is exactly why we have set up a £10 million investment and contract readiness fund—to provide grants for organisations that want to attract investment but know they need more help to become more investment-ready.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Among the Public Administration Committee’s many criticisms in its report today, it rightly highlights that Ministers cannot expect the big society bank to provide the solution to the funding crisis that their cuts are causing for hundreds of charities. Given that the report goes on effectively to accuse Ministers of being out of touch and not providing effective leadership to tackle the problems that charities face, would not now be the perfect time for yet another one of the Prime Minister’s big society re-launches?

[Mr Hurd]

I am not going to take any lectures on leadership and Big Society Capital from the Opposition, because they talked for 10 years about setting it up but did not actually do it. We are doing it because we want to make it easier for social entrepreneurs to access capital. It is on track, and we are very proud of it.

Public Services (Social Value) Bill

Debate between Gareth Thomas and Nick Hurd

Friday 25th November 2011 Commons Chamber

[Mr Hurd]

I accept that point, and to some degree that is what we are doing today. We are moving forward on that. My hon. Friend mentions the concept of the right to challenge, which had not previously been mentioned in the debate. Again, we are moving forward on that, because we are moving into a world in which there will be much more information about what commissioners are doing and how public money is being spent. Through the Localism Act 2011, which I am delighted to say has completed its passage through Parliament, the right to challenge is now set in statute, with regulations to follow shortly to clarify how it will work. That is progress on the journey that I have described.

[Mr Thomas]

Will construction be covered by the clause on social value?

[Mr Hurd]

I have nothing to add to what I said in Committee. The Bill is reasonably clear about where it will apply.

The right hon. Member for Salford and Eccles mentioned B4Box in her constituency. The position will be enhanced by the new best value guidance, and there is nothing to prevent the local authority from working on the basis that she described. I am grateful to her for bringing Aileen in to talk about the matter. Aileen is doing it. There is space in the system for her to do it. She and I would probably agree that we need to send a stronger signal that it is okay, but it is okay and people are doing it. The best value guidance from the Secretary of State moves things on further by sending a signal of permissiveness.

I have always made it clear that the Government have from the start supported the principle of the Bill because of the value that it adds to the process, and it goes with the grain of what the previous Administration were trying to achieve. The system, risk averse as it is, is getting a consistently stronger signal about the need to take account of wider social value considerations when spending taxpayers’ and constituents’ money and to be more alive to opportunities to commission intelligently. Lots of examples have been cited in our debates of fantastic organisations, such as Create, that are adding value to our communities. I cited that example in my Brussels speech because in many ways it embodies exactly what we are trying to encourage.

We can do more. The hon. Member for Harrow West goaded us to come up with more ideas to support social enterprises in this movement. I have talked about the need to open up new market opportunities to help these enterprises grow and to help more people, but the Government can do more to make life simpler for the social entrepreneur. I shall come later to the question of definition but these are businesses first and foremost, and the guidance and requirements that we place on people trying to run businesses in this country are ridiculously disproportionate. A rigorous process is under way. It cannot be undertaken lightly and it does not lend itself to soundbites. It is a rigorous process of going through each subsector of the economy to look at the regulatory burden and to discuss with the players in those sectors what we can remove and what is no longer proportionate or necessary. That process is well under way.

We can also help social enterprises with the increasingly important question of how to measure social impact. That is their currency. Many of us know that the money providers, whether private or public, are increasingly demanding that social enterprises, charities and, I hope, other organisations measure and communicate their social impact and social value, which is their unique selling point. Many of us are also aware that arguably there is too great a profusion of initiatives in this area and of the risk that this will only confuse the landscape. I want greater coherence and consistency not least so that we, as funders, and other stakeholders can agree on what is worth measuring and how it can be measured affordably by all organisations.

Oral Answers to Questions

Debate between Gareth Thomas and Nick Hurd

Wednesday 2nd November 2011 Commons Chamber

[Mr Hurd]

My hon. Friend makes a good point, with which I have a great deal of sympathy.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

The latest survey of charity leaders by the National Council for Voluntary Organisations shows that 30% of them expect to cut jobs in the next three months, and that some 60% expect the economic situation, as it affects such organisations, to deteriorate over the next 12 months. Given that voluntary sector capacity is being reduced, is not the truth about the big society that, on the Minister’s watch, it is about to get smaller?

[Mr Hurd]

I dispute that. I remind the hon. Gentleman that the leader of his party told the BBC in February that he would not make councils protect cash for voluntary groups. There is a hard economic reality here: a sector that receives £13 billion of taxpayers’ money cannot be immune to the requirement to contribute to a reduction in Government borrowing. The challenge now is for us to find a way of working together to mitigate the damage done to the voluntary sector in the short term, while preparing it for the real opportunities down the track to deliver more public services.