Public Sector Funding

Debate between Emma Reynolds and Chris White

Wednesday 23rd March 2011 Westminster Hall

[Chris White]

I thank my hon. Friend for her intervention. It is clear that her council is a very good example of best practice.

[Emma Reynolds]

Has not the chair of the Local Government Association, who is a Conservative, said that the cuts imposed by central Government on local government go way beyond efficiency savings and will therefore necessarily put local government in the impossible position of having to cut some services?

[Chris White]

I refer the hon. Lady to the fact that these are difficult economic times, which were not brought about by the coalition, and something needs to be done. At the moment, I do not see the Opposition doing anything at all to begin to address some of these issues.

Voluntary services in a range of areas, from welfare to social care and from youth services to health care, enable the public sector to reduce “failure demand”, which is one of the biggest costs to the taxpayer. Because we fail to do the right thing the first time, we end up having to make more expensive interventions further down the line. That is not the right approach to providing services. Local authorities should work with the voluntary sector to use its expertise and understanding of the needs of service users to build better platforms. Although voluntary organisations can be a short-term expense, they can also generate significant savings in the long term. If anything, we should seek to shift funding towards voluntary organisations, rather than taking funding away from them.

An excellent report by the Association of Chief Executives of Voluntary Organisations called “Replacing the State?” gave four strong reasons why voluntary organisations are better placed to provide services than traditional in-house bodies. They are local and focus on the needs of their users, rather than on what is best for providers. They have higher levels of co-ordination, as they have a community-wide focus. They command a high level of public trust. They are incredibly innovative and able radically to change the delivery of services for the better.

There is an even plainer economic argument. Voluntary organisations are already saving the public sector more than £20 billion in staffing costs, given the fact that 17.1 million people volunteered in 2010. If we cut the funding on offer to the sector, we will reduce the infrastructure that channels those volunteers, either leaving people without services or leaving the public sector having to hire paid staff. I believe that if we integrate voluntary organisations further into public service delivery, we will not only see long-term costs go down, but we will be able to secure the future of many important groups throughout the country—something that can benefit all our local communities.