Community and Voluntary Sector Funding

Debate between Jess Phillips and Robert Halfon

Tuesday 24th November 2015 Westminster Hall

[The Minister without Portfolio (Robert Halfon)]

It is an honour to serve under your chairmanship, Mrs Moon. I congratulate the hon. Member for Bradford West (Naz Shah) on securing the debate and on her election; there are not many Labour MPs I raise a glass for when they get elected. I know that in her maiden speech she spoke about social action in terms of food banks. Although, of course, I disagree with her on some points, she spoke thoughtfully and with passion, and I will try to answer some of her points.

The hon. Member for Clwyd South (Susan Elan Jones) said she was worried about mentioning that she chairs the all-party group on civil society and volunteering; I think that is a badge of pride. She made some thoughtful remarks about gift aid, which she will know was worth £1.2 billion to charities last year. The Government have launched Charities Online, an online system that makes it simpler and faster to claim gift aid. The innovation in giving fund has provided around £10 million to develop ideas that have the potential to create a step change in the giving of time and money, including, as she suggested, crowdfunding platforms and other innovative forms of technology.

The hon. Member for Bradford West spoke about procurement, an issue that has come up not only recently but over many years. I have spoken on the record in the past, when I was on the Back Benches, about the Tesco charities—in other words, the bigger charities that get the bigger slices of the pie. She will know that the private Member’s Bill of my hon. Friend the Member for Warwick and Leamington (Chris White), the Public Services (Social Value) Act 2012, supported by the Government and passed by Parliament, requires public service commissioners to consider social value whenever considering procurements in their area. The Cabinet Office has led the successful Commissioning Academy to instil best practice across the public sector, as well as delivering special commercial masterclasses to charities to support them to bid. There is also a local sustainability fund of £20 million that supports grassroots charities, to ensure they have a secure future.

The hon. Member for Bradford West is right that charities currently get business rates relief of up to 80% if a property is used for charitable purposes. Many local councils top up certain reliefs, offering 100% relief in order to give businesses and charities extra help, and business rates relief helps charities up and down the country. With the Government’s tax changes, employers, including charities, will have their national insurance bills cut by £1,000 from April next year.

The Big Lottery Fund has come up on a number of occasions. I have to confess that I have not seen inside the Chancellor’s lunchbox, but I urge hon. Members to wait 24 hours and hold their horses, so that we can see what happens. I cannot comment on funding, particularly because of the spending review, but I want to talk about three things—funding we have provided for civil society, what we have done to improve civil society, and our ongoing work.

It was a pleasure to hear from my hon. Friend the Member for Chippenham (Michelle Donelan). I cannot get away from her Facebook page, because it has one post after another of her community activism, looking after her local community and doing exactly the kinds of thing we have talked about today. I know that her work is acknowledged by her constituents. My hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) talked about volunteering, which I hope to come on to later.

I am a passionate believer in big society and always have been. I have always believed that social capital is as important as economic capital, that social entrepreneurs are as important as economic entrepreneurs and that people power is as important as state power. That is what big society means to me, and that is what big society means to the Government.

[Jess Phillips (Birmingham, Yardley) (Lab)]

Does the Minister recognise that people capital and social capital, which he rightly points to, will not provide a rape crisis counselling service for children, no matter how much he wishes they might? The state once provided that. The Big Lottery Fund then went on to provide it, and the Chancellor is potentially about to take it away.

[Robert Halfon]

As I said, I suggest the hon. Lady holds her horses and waits to see what happens in 24 hours. I will talk about what we have already done to fund civil society and big society in a moment.

The Government recognise that individuals are looking beyond the state and want to help friends, family, their community and their local services. People are becoming far more community-minded and are asking not what their community can do for them, but what they can do for their community. Millions give their time, energy and expertise to help others, and they put service above self. I am wearing a Heart 4 Harlow badge, which is from a social action project created by faith communities in my constituency. They work together to do social action and to help our town. This social action—this people power—is the foundation of the bigger and stronger society that we all desire.

It is no surprise that the Charities Aid Foundation found that the UK is the most generous nation in Europe. That means that the public are giving twice, which it is important to note, both in their taxes and personal donations. With all the talk of funding, it is also worth noting that taxpayers are giving about £13 billion a year to charities up and down our country—remember, that is not Government money, but taxpayers’ money.

We should also note that five years ago, our country was broken. We had experienced the deepest recession in living memory and the deficit between public spending and the Government’s revenue was unsustainable. Unemployment had risen to record levels and household debt was higher than many of us would agree is sensible. The societal issues that stemmed from those circumstances meant that public services and civil society both faced an incredible challenge—one of increasing demand, but without the ability easily to invest increased resources to meet it.