Oral Answers to Questions

Debate between Lilian Greenwood and Nick Hurd

Wednesday 19th December 2012 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

T6. Nottingham community and voluntary service’s state of the sector report found that although demand for services is increasing, 69% of voluntary groups are facing reduced income, 52% have been forced to cut staff this year, 76% say they may have to close a service and 36% may close altogether. Is this not a terrible indictment of this Government’s support for the voluntary sector?

[Mr Hurd]

The Labour party has been predicting the collapse of the voluntary sector for three years. In fact it has grown, but it is under huge pressure, which is why we are doing so much to cut red tape, invest in giving, invest in social investment, support volunteering and make it easier for charities to help us to deliver better public services.

Oral Answers to Questions

Debate between Lilian Greenwood and Nick Hurd

Wednesday 21st March 2012 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

13. What recent discussions he has had on the types of Government funding models available to the voluntary and community sector.

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

We want to help the voluntary and community sector to become more resilient by developing three pillars of funding: traditional giving, income from the state including more opportunities to deliver public service and a new pillar, the emerging market of social investment.

[Lilian Greenwood]

Many local voluntary organisations were set up to complement statutory services, as Nottingham Community and Voluntary Service reminded me when I met its representatives last week. If the predominant funding source for the voluntary sector is now to be public sector contracts, will not thousands of valuable voluntary groups throughout the country be left high and dry, showing once again this Government’s utter contempt for the big society that they purport to champion?

[Mr Hurd]

I think the hon. Lady missed my point. We are developing three pillars of funding, with the encouragement of high levels of giving, including a very generous tax incentive introduced by the Chancellor in the previous Budget; a new source of funding, social investment; and the launch of the world’s first social investment bank within a few weeks. But, yes, we want to do more with the sector to help us deliver public services, so, yes, we will be opening up new opportunities for charities and social enterprises to help us do just that.

Voluntary Sector (Nottingham)

Debate between Lilian Greenwood and Nick Hurd

Tuesday 8th March 2011 Westminster Hall

[Mr Hurd]

That is certainly the question in my mind and in the mind of the Secretary of State for Communities and Local Government. We, in Parliament, know the power of transparency—we know that it gives real power to citizens. In this instance, the public have the right to know how their money is being spent and what choices are being made. We are trying to help by sending a strong steer to local authorities and allowing the public to make up their mind about local decisions.

We have set aside £100 million of taxpayers’ money—a significant sum—as a transition fund to help voluntary sector organisations. Many are finding themselves terribly exposed to cuts of grant or in contracts, and need some help to get out of the hole—as long as they have a plan to do so. We continue to invest on behalf of the taxpayer in that sector. My Department has a budget of £470 million, and we structure what we do around three questions.

First, we ask what we are doing to make it easier to run voluntary community sector organisations. That involves cutting red tape to make it easier for those who have the incredibly difficult job of running small charities or civil society organisations. We continue to invest in the infrastructure that exists to support the sector. We want to make it much more effective.

Secondly, we ask what we can do to get more resources—both time and money—into the sector. We published a Green Paper on giving, which will become a White Paper. We are well on track to deliver a big society bank, which will make it much easier for social entrepreneurs to access capital, and we are coming up with new programmes such as the National Citizen Service, which I hope will be available in Nottinghamshire before too long. We are about to commission next year’s pilots, with 30,000 places. I urge the hon. Member for Nottingham South to engage with it when it arrives, as it will be an enormously positive opportunity for local young people, and a fantastically good process of connecting them and giving them the power to make a contribution to community.

Last but not least, we ask ourselves the question, “What can we do to make it easier for charities, social enterprises and voluntary organisations to deliver public services?” The sector delivers about 2% of contract value, but we would like it to do much more. We are working towards publishing a White Paper on public service reform, which will specifically address what should be done to open up the public service markets to more competition. Under it, charities and social enterprises will have the opportunity to deliver more public services, with some of the real value being in supporting those people mentioned so eloquently by the hon. Member for Nottingham South. In my experience, with some of the really difficult things—getting the long-term unemployed back into work or keeping people out of jail or off drugs—really valuable work is being done by quite small community organisations or social enterprises. We want to level the playing field to make it much easier for such organisations to deliver public services.

[Lilian Greenwood]

Will the Minister give way?

[Mr Hurd]

I shall not give way, as this is my last minute and the hon. Lady spoke for a long time.

None of this is easy, but we are actively trying to help the sector and local authorities through the difficult process of managing this transition. We want to minimise the damage in the short term, and maximise the opportunities for the voluntary and community sector so as to unlock the potential that is out there for improving more lives.