Local Government: Finance

Baroness Howarth of Breckland Excerpts

Monday 13th December 2010 Lords Chamber

[Baroness Hanham]

My Lords, we should be clear that the working neighbourhoods grant was just a three-year fund. There was no expectation—and no money was put aside—for it to continue for longer than three years. The noble Baroness shakes her head, but that is the situation. The previous Government could have decided to continue it, but they did not make that decision; they left it as a three-year grant.

The noble Baroness asked where the other money will come from. We have set up a £1.4 billion regional growth fund, which will be administered by the noble Lord, Lord Heseltine. Councils and local enterprise partnerships will be able to bid for money from that fund, which will be available in particular for private sector-led growth. The expectation is that local councils will work closely with the private sector, not only in local enterprise partnerships but in general, so they will be able to lean on that sector for additional assets.

[Baroness Howarth of Breckland]

My Lords, I was delighted to hear the noble Baroness encourage local authorities not to target voluntary organisations because of the work that they do to enhance the concept of the big society. Many of them were excited by the idea that the work that they do in communities would be increased. However, as the noble Lord, Lord Beecham, mentioned, many of them are finding already that their grants are being reduced and that the money that the Government say they have set aside for a transition is totally inaccessible. What will the Government do to ensure that groups that provide things such as visiting services to the elderly and mentoring services to the young—volunteer bureaux of all sorts—will be maintained so they can play their part?

I have a second brief question. How will the Government ensure the maintenance of quality in care services when local authorities are trying to drive down pay levels and numbers of staff, in particular in areas where there are extremely vulnerable residents? I would be grateful to know this.

[Baroness Hanham]

My Lords, I have already indicated this Government’s strong support for the voluntary sector and their belief that the sector has a major role to play in the future. Indeed, the noble Baroness will see that in the Localism Bill, which has just been published, a big emphasis is placed on the need for local authorities to work with voluntary organisations and, indeed, for voluntary organisations and community associations to have a greater say in how things are run in conjunction with, or independently from, the local government sector. Therefore, there is no disagreement between us about that or about the value of the voluntary sector. The noble Baroness is right: there is a transitional fund of £100 million to help voluntary organisations. I think that the volunteer centres will fall into that, and that will help them to withstand some of the reductions in grant.

I was asked about the care of the elderly. The work that is done will be very carefully monitored; we had some discussion about this on Thursday. It has to be made clear that the quality of the care is extremely important. It is not currently brilliant across the country, and we are very aware that efforts need to be made to ensure that it is universally good.