Community and Voluntary Sector Funding

Debate between Dawn Butler and Naz Shah

Tuesday 24th November 2015 Westminster Hall

[Naz Shah (Bradford West) (Lab)]

I beg to move,

That this House has considered funding for the community and voluntary sector.

It is a pleasure to serve under your chairmanship, Mrs Moon. I welcome the presence of the Minister, who will respond to this debate.

Given the value that the charity, community and voluntary sector adds to the communities we represent and the incredible services that it provides to our constituents, such as mine in Bradford West, it is fitting that we debate this important issue as the sector faces difficult and economically challenging times and increasing user need. We are on the verge of another round of Government spending cuts, and in many places the cuts have already done irreparable damage to the community and voluntary sector. There have been many changes over the past five years to grants, commissioning and procurement for small, medium and large charities. Many should have offered a lifeline to vital projects in our constituencies in the face of austerity, but the reality is that they could not.

The previous and current Governments committed to reforming the voluntary and charitable sector and helping it to be buoyant at a time when it was most needed. The big society project translated to commitments made in this House, but in reality little progress was made in communities that saw funding falling, grants drying up, short-term procurement opportunities, increasing costs and plateauing revenue streams. We have seen projects and charities that provide innovative services and important community projects close and others struggle to stay afloat. By and large, the charity sector has tried to adapt to the challenging economic environment, but we should create a culture in which it can thrive and serve, because there are intangible and immeasurable benefits to the services it provides. I believe that all parties recognise that fact, but are the Government giving it due consideration?

On procurement, a recent study by the National Council for Voluntary Organisations on the financial sustainability of the sector showed that since 2009 there has been a £2.3 billion reduction in Government contracts, and that the sector faces a £4.6 billion annual shortfall by 2018-19 in the funding it needs to maintain its current level of service. The simple fact is that the need for charitable services is increasing, as demonstrated by a report published by the Charity Finance Group in December 2014, which showed that more than 70% of charities expect demand to increase. We have to recognise that, if we are to maintain the same level of services, we must take action now to ensure the long-term sustainability of the community and voluntary sector.

[Dawn Butler (Brent Central) (Lab)]

I congratulate my hon. Friend on securing the debate. On the issue of sustainability and the need for charities, I want to mention two charities in my constituency. First, given that this will be the coldest and longest winter in 40 years, the services that Energy Solutions provides to the community are essential. Secondly, although World AIDS Day is coming up on 1 December, the Community Health Action Trust has had its funding cut, which means that it can no longer serve the community and test people rapidly for HIV, which is on the increase among heterosexuals.