Community and Voluntary Sector Funding

Jim Cunningham Excerpts

Tuesday 24th November 2015 Westminster Hall

[Naz Shah]

My hon. Friend the Member for Brent Central (Dawn Butler) makes a valid point. We are seeing that theme across the country.

The £2.3 billion reduction in Government funding is interesting. It will come through a number of streams, because the third sector has a symbiotic relationship with many Government-funded organisations, not least local councils, whose budgets have been decimated by austerity. However, the wider point is that the Government have been unable to build the third sector’s capacity to apply for more complicated contracts through increasingly complex and larger tendering processes.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on securing this timely debate. The Government talked about a big society, but they really meant a smaller society. My hon. Friend touched on an important point. A lot of local authorities procure services from the voluntary sector—particularly from citizens advice bureaux, and I am sure from a lot of other organisations. In a time of austerity, people badly need those services. They cannot get legal aid any more for a whole range of issues. Does my hon. Friend agree that that is an injustice perpetrated on society?

[Naz Shah]

I absolutely agree. I will come on to talk more about the big society—or the failure to have a big society—and what should be done.

The coalition Government and this Government concretely demonstrated their commitment to tendering provisions for the VCS sector when they embraced the Public Services (Social Value) Act 2012. They have attempted—I use the term loosely—to reform public sector procurement to benefit VCS and social enterprise groups through their open public services approach. However, the reality on the ground is quite different. According to the National Audit Office, income from the Government to deliver contracts decreased by £1 billion in 2012. Its report shows that the biggest private sector contractors’ market share increased, and in 2012 charities lost almost £886 million in contracts, while the largest providers’ income grew by £551 million. That is unacceptable.

Those are not new statistics, and the problems are not new. There has been a lack of solid progress since the 2012 Act was enacted. The Government backtracked and kicked their commitment to transparent tendering into the long grass. They tender contracts that are far too large for the majority of VCS organisations to bid for; they put unrealistic timescales on the bidding process, which works in the favour of the larger private companies; and the calculations of cost value per unit still fail to consider the social value added by VCS organisations. Those issues are magnified by the financial pressure that all VCS organisations are under. Many have adapted and risen to the challenge of maintaining a similar level of service by innovating and raising finance elsewhere. The Government have failed to give due consideration to how charities can build the capacity that will give them the necessary skills to bid for contracts.

There has been a massive shift away from grant funding, which was more discretionary, to contract-based services, which are far more rigid. Without flexibility and financial stability, VCS organisations are unable to innovate—not in their front-line service, but in their capacity to bid for large contracts against private companies. I am extremely interested to hear how the Government will address that capacity shortfall to ensure that those who are doing the best, most valuable work are capable of applying for such contracts.

I used to issue health action zone grants. As a former NHS commissioner, I have seen at first hand how the voluntary and charitable sector developed, and how the Government strangled the ability of smaller organisations to thrive and meet the demand in their communities. Until recently I chaired a large mental health organisation, which, as a large organisation, was in a privileged position. We were able to ensure that we could survive. That is an example of the inequalities that are created by the Government’s stance on voluntary sector funding.

A further issue that must be addressed today is the Government’s longer-term strategy to devolve discretionary business rate exemptions for the VCS sector and charities. As the Minister is aware, there is currently an 80% mandatory business rate relief for charities, and the other 20% relief is provided at the discretion of local councils. Councils are already suffering incredible pressure on their budgets and are struggling to offer the full rate relief that is important to large and small VCS organisations. That 20% can be the difference between keeping services going and their having to close altogether. The situation made difficult by the uncertainty about the future of the rate relief and the expected full devolution of council tax control to councils.

It is essential that we give small charities all possible support so that they can continue to provide services to our constituents. It is imperative that the Government issue a long-term strategy on rate relief. Ideally, they should help councils to offer full rate relief to all charities for the foreseeable future. Given that more of the financial burden has fallen on councils in areas of higher deprivation, such as my constituency, it is not fair that yet again the Government are not supporting the communities that have the most need.

Recently, I was invited to address an event in my constituency organised by the Blenheim Project, which helped local women and their children who were made homeless and vulnerable due to domestic violence. I heard moving testimony and stories from those who had received invaluable support from the project and who, as a result of that help, managed to live not as victims but as active and productive citizens. Breaking the cycle of homelessness is the most cost-effective approach in the long term and has benefits for communities and for the economy as a whole. I heard from one woman who stayed in the project as a young child with her mother after they finally had to leave home. She continued to enjoy security at the project even though it had been taken away from her at home. That young women went to university and is now working and contributing to society. She is just one example from thousands of similar stories about the importance of receiving that much-needed support.

However, the event was not held to celebrate the Blenheim Project moving forward or developing; it was to celebrate the project’s achievements upon its closure due to funding cuts. It was sad, because I know the value and appreciate the benefit that the project added to my constituency and community, reaching places and people that others could not. As someone whose life has been shaped immensely by the voluntary sector, both as a service user when facing difficulties in my own life and when I worked in it as an employee, I am devastated at the loss of the project’s beds. Let me be clear: one bed space literally means the difference between life and death for some women. Where I come from, one death is one too many.

The charity had 37 long years of hard work, supporting hundreds of women and providing exceptionally high-quality support to prevent women and children from becoming permanently homeless. It had proved itself successful, but could not find a sustainable financial platform despite offering a service that others could not, and for a modest sum when all its intangible benefits are considered. If it was not the definition of a public good that we in this House should protect at all costs, what is?

The pressures of the funding cuts brought about by the coalition Government’s austerity measures and increased by this Conservative Government cut to the heart of our communities. They disproportionately affect northern councils that have some of the poorest wards in the country. The funding cuts have propelled councils to rationalise and reconfigure services to meet demand and support vulnerable people, but the impact on service delivery continues to hit the most vulnerable indirectly, and initiatives such as the Blenheim Project are falling victim. The VCS is known to provide high-class services to people and communities who often get missed by mainstream services, but this Government believe that that does not carry a price tag, as we have seen from their so-called big society pronouncements in the past.

The changes in funding, which have required the development of new commissioning and VCS frameworks, have made it impossible for projects such as Blenheim to continue providing the quality support that they know women and children need. The new reality in funding and commissioning arrangements makes many successful small charities unsustainable. Small to medium-sized local charities face challenges due to the drive towards commissioning processes that seek to maximise outputs on the same resources. The tendency for bigger charities to drive down costs as loss leaders in the first instance makes the option of tendering for contracts unsustainable. Smaller charities do not have the resources to invest in future developments, never mind taking on projects as loss leaders as part of a wider strategy. In a statement, the Blenheim Project said:

“Due to pressures in funding Bradford Council can no longer support as many homeless people as before and have drastically reduced both the number of places they will fund and also the level of funding”,

which would no longer be adequate for the services that the project offered. In addition, the council took away the project’s ability

“to assess the needs and risks of the clients”

for itself.

Only a few hundred yards up the road from the Blenheim Project used to be another project, the Manningham Mills Community Association, which has also bitten the dust. Another community has been robbed of a vital resource due to funding cuts and belt tightening. For me, however, there is belt tightening and there is just strangling a community. What the Government are doing is a shameful indictment of how out of touch they are with the communities they are supposed to protect.

Iraq Inquiry

Jim Cunningham Excerpts

Thursday 29th January 2015 Commons Chamber

[Mr Grieve]

I can see where my hon. Friend is coming from, but his question goes into the realms of speculation. On the face of it, if the inquiry, which has been properly set up and conducted, makes a report—a Privy Council report—to Parliament, I do not see why such an issue should arise. My concern is to get an explanation.

[Mr Jim Cunningham (Coventry South) (Lab)]

In 2012, the right hon. and learned Gentleman was in government and he had the impression that the inquiry would report at that time. He was still in government after 2012. What impression did he have then about the delays?

[Mr Grieve]

The hon. Gentleman asks me to stray into areas where I do not think I should go.

Growth Deals

Jim Cunningham Excerpts

Thursday 29th January 2015 Commons Chamber

[Greg Clark]

I agree with my hon. Friend that he is a persistent advocate for Shipley, which is quite right as he is the local MP. The transport funds have been devolved to the West Yorkshire combined authority. In fact, £1 billion is available. Of course it is right that, in prioritising the transport schemes, the authority should cover the whole area. That is clearly understood and is set out in the agreement. I know that my hon. Friend will make his cause locally with the same vigour and passion that he does here in Westminster.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Government have foisted massive cuts in local services on Coventry. Will the Minister tell me what has happened to the gateway project in Coventry? There have been delays, and there is now talk about an announcement next week. Will he also outline the reasons for that delay? He announced in his statement that there would be grants for LEPs. What grants are available for small businesses in Coventry?

[Greg Clark]

On the Coventry and Warwickshire local enterprise partnership, its expanded growth deal is now worth nearly £90 million and it includes a programme of grants and advice and support for growing businesses. As for the access improvements to Coventry city centre, they have been funded. Sites that are being brought into use require planning permission, but that is a matter for the local authority. If the hon. Gentleman wishes to meet me, I will take up the matter with the LEP and the local authority.

Food Banks

Jim Cunningham Excerpts

Wednesday 17th December 2014 Commons Chamber

[Maria Eagle (Garston and Halewood) (Lab)]

I beg to move,

That this House notes that the number of people using food banks, according to the Trussell Trust, has increased from 41,000 in 2009-10 to 913,000 in 2013-14, of whom one third are children; recognises that over the last four years prices have risen faster than wages; further notes that low pay and failings in the operation of the social security system continue to be the main triggers for food bank use; and calls on the Government to bring forward measures to reduce dependency on food banks and tackle the cost of living crisis, including to get a grip on delays and administrative problems in the benefits system, and introduce a freeze in energy prices, a national water affordability scheme, measures to end abuses of zero hours contracts, incentives for companies to pay a living wage, an increase in the minimum wage to £8 an hour by the end of the next Parliament, a guaranteed job for all young people who are out of work for more than a year and 25 hours-a-week free childcare for all working parents of three and four year olds.

I welcome the Minister for Civil Society to his place in what is, I think, his first debate from the Front Bench, but I note that the Environment Secretary is not taking part in this debate. She transferred a question about food poisoning away from her Department just this week. She does not want to talk about food aid today, but she is—[Hon. Members: “Welcome!”] I would like to welcome the Environment Secretary to her place. She transferred a question about food poisoning away from her Department last week. This week she does not want to take part in a debate about food aid, yet hers is the lead Department. I just wonder what part of food policy she thinks she is responsible for.

Since the last Opposition-day debate on food banks a year ago, things have worsened. Over the past six months, there has been a 38% increase in the number of people seeking food aid from the Trussell Trust’s 420 food banks. The Trussell Trust expects the full-year numbers to be over 1 million. The report of the all-party parliamentary inquiry into hunger in the UK, entitled “Feeding Britain”, published last week, said that 4 million people are at risk of going hungry, 3.5 million adults cannot afford to eat properly, and half a million children live in families that cannot afford to feed them.

Nobody would choose to go to a food bank if they had any other option. Let us be clear about that. Research conducted by Oxfam, the Child Poverty Action Group, the Church of England and the Trussell Trust and published in November, entitled “Emergency Use Only”, indicates the truth of what many of us who have visited our local food banks have seen. People are acutely embarrassed to have to go to a food bank. They feel ashamed to have to accept such help, but the research is clear: people turn to food banks as a last resort, when all other coping strategies have failed.

The Trussell Trust says that 45% of people who visit the food banks that it operates do so because of problems with the social security system, a third because of delays to determining their benefit claims, and the rest because of benefit changes and sanctions, often unfairly applied, which have left them with no money.

[Mr Jim Cunningham (Coventry South) (Lab)]

Does my hon. Friend agree that it is not only people on benefits, but what we would call the working poor, who have to use food banks? That is where the increases are.

Oral Answers to Questions

Jim Cunningham Excerpts

Wednesday 26th November 2014 Commons Chamber

[The Prime Minister]

I agree with every word my hon. Friend has said. In fact, I was wondering why the Labour Benches were so quiet, and now I realise, of course, that the former shadow Attorney-General, who normally makes so much noise, is presumably not here today. She is probably out taking pictures of people’s homes, I expect. We know what that meant about the modern Labour party—sneering at people who work hard and love their country.

[Mr Jim Cunningham (Coventry South) (Lab)]

Q9. Can the Prime Minister tell the House how much taxpayers’ money his Government spent on challenging the EU cap on bankers’ bonuses before it was abandoned last week? Has he learned nothing from Rochester and Clacton, and is not UKIP right, because even UKIP was against increases in the bankers’ bonuses?

[The Prime Minister]

We were taking the same approach as that advised by the Governor of the Bank of England and by all the experts who advised us on that position. I think it is important to stand up to Brussels and to challenge them when we think it has got it wrong.

Recall of MPs Bill

Jim Cunningham Excerpts

Monday 27th October 2014 Commons Chamber

[Thomas Docherty]

I am most grateful for my hon. Friend’s intervention. We are clear—I look to the Minister to clarify this when he responds—that it is a case of suspension, not a running total, although one hopes that we will not see my hon. Friend too near to the Dispatch Box and the mace in the near future.

[Mr Jim Cunningham (Coventry South) (Lab)]

Earlier, my hon. Friend touched on a point that the hon. Member for Richmond Park (Zac Goldsmith) never really cleared up because he did not distinguish between malpractice, bad practice and criminal activities, and political activities. That is the weakness in his amendment—it does not distinguish between the two and we could end up with a recall because of someone’s political opinion in the Chamber or outside. Does my hon. Friend agree?

[Thomas Docherty]

I am grateful for that intervention, and my hon. Friend spoke very well last week when he pointed out, and Labour Members agree, that we are representatives, not delegates, in this place. That is an important principle, particularly for those of us in the Labour movement. He is entirely right—I will come to this later—that the basis for recall should be wrongdoing and someone’s conduct, not the causes that they support.

--- Later in debate ---

[Mr Jim Cunningham]

The hon. Member for Richmond Park (Zac Goldsmith) said earlier that the threshold would be so high it would be very difficult for vexatious claims to be made. Why does he not separate that in the Bill? Why does he not drop that—completely separate it—if he does not intend that?

[Mr Jones]

My hon. Friend makes a good point. Like a lot of other things the hon. Gentleman says, he has not actually thought about that in practice. The problem I have with the word “vexatious” is that somebody such as Ann Cryer might come under such a recall Bill, given what she was arguing for, and it could be argued that the people arguing against her were not being vexatious but were arguing against a clear, important role that she was performing.

European Council

Jim Cunningham Excerpts

Monday 27th October 2014 Commons Chamber

[The Prime Minister]

My hon. Friend makes a very important point. As he knows, we have been pushing the Pakistan Government to amend the blasphemy laws, and I will be speaking to the Prime Minister tomorrow.

[Mr Jim Cunningham (Coventry South) (Lab)]

rose—

[Mr Speaker]

If the hon. Gentleman was in the Chamber at the start of the statement, I will call him, but if he was not, I will not.

[Mr Cunningham]

indicated assent.

[Mr Speaker]

He was. I will very happily take his word.

[Mr Cunningham]

Is the Prime Minister prepared to compromise over the rebate, because so far he has made no statement to rule that out?

[The Prime Minister]

I hate to say it, but had the hon. Gentleman been here throughout, he would have heard my answer, which is this. Paying a little bit more or a little bit less because of a normal annual adjustment is one thing; €2 billion is quite another.

Recall of MPs Bill

Jim Cunningham Excerpts

Tuesday 21st October 2014 Commons Chamber

[Mr Lansley]

I am quite old fashioned: Members would have to look quite far back to find a point at which I did not vote in accordance with the Whip. I think that the last time I defied the Whip was on the question of same-sex adoption rules.

I see part of my role as having been elected as a Conservative. A number of Members have said, perfectly reasonably, that we are primarily and overwhelmingly elected—the hon. Member for North Down (Lady Hermon) has accepted this—on a party rather than an individual basis. I do not see that as meaning that individual Members of Parliament should not have a conscience or be able to exercise their judgment, because they owe that to their constituents. They will have to come to a judgment on great matters of conscience that are relevant to their constituency. That was true on Iraq: I did not vote for the invasion, even though it was my party’s policy to do so. To suggest, however, that we should behave as individuals outside party discipline is nonsense, because the whole system will begin to break down if we go in that direction.

The point made by my hon. Friend the Member for Richmond Park was slightly the other way around. He said that we all behave in the way the Whips tell us, but this has been a more rebellious Parliament—for good or ill—than ever before. I am not sure whether that is a good basis for the argument in favour of recall, because Members clearly feel that they can respond to their conscience and their constituents without the need for a recall mechanism.

My hon. Friend the Member for Cities of London and Westminster (Mark Field) has suggested that if we took the Whips out of the process of deciding whether a Member should be suspended from this House—actually, I do not think that the Whips are part of that process— that would somehow relieve us of the impact of the Whips controlling our behaviour. The recall mechanism proposed as an alternative to this Bill, however, is a greater risk to Members. If a Member were subject to an allegation—a serious allegation, but not a criminal one—that threatened their reputation and position in the constituency, it is clear that they would then be subject to a notice of intent and at risk of a recall petition. The situation would develop rapidly and the question for their party would then be whether it supported them or not.

The hon. Member for Clacton (Douglas Carswell) mentioned Ian Gibson, who accused his party of abandoning him. The most dangerous thing for a Member is to be abandoned when they are at risk of having to stand in a by-election in their constituency. If the party takes the Whip away from a Member, they would, in effect, have no chance in a by-election—unless they were in a very strong position—and they would be undermined. The power of the Whips as to whether a Member has the Whip—and, therefore, their power over that Member’s position in an election—would be unchanged by this or any other recall Bill. The power of the Whips is often exaggerated, but in so far as it exists, it would be unchanged by the recall mechanisms, whatever they might be.

[Mr Jim Cunningham (Coventry South) (Lab)]

This is also a constitutional issue. We make judgments on behalf of our constituents on issues that are not in our manifestos. We also carry out manifesto commitments, but we are not delegates. I think that is where people tend to get a little confused: there is a big difference between making a judgment on behalf of constituents and being mandated as an individual delegate to represent something.

Iraq: Coalition Against ISIL

Jim Cunningham Excerpts

Friday 26th September 2014 Commons Chamber

[The Prime Minister]

I want to make some progress with my speech, and I will then take some more interventions.

As I have said, what is required is an inclusive Iraqi Government. We need a Syrian Government who represent all their people. But I want to be frank with the House. Even after ISIL has been dealt with, we should be in no doubt that future British Prime Ministers and future British Governments will, I suspect, be standing at the Dispatch Box dealing with the issue of Islamist extremism in different forms and in different parts of the world for many years to come. ISIL has sprung up quickly, but around the world we see the mayhem caused by other groups, whether Boko Haram in Nigeria, al-Shabaab in Somalia or al-Qaeda in Yemen. We are dealing with a generational struggle caused by the perversion of one of the world’s great religions, Islam, but I have no doubt that this struggle is one that this House and this country are more than equal to.

[Mr Jim Cunningham (Coventry South) (Lab)]

General Dannatt hinted today on television that we may well need to use ground forces at the end of the day, and it does take time to train the Iraqi army. If that were the case, will the Prime Minister come back to the House?

[The Prime Minister]

I have said that we will come back to the House if, for instance, we make the decision that we should take air action with others in Syria, but I am not contemplating the use of British combat forces because I think it would be the wrong thing to do. The lesson to learn from previous conflicts is that we should play the most appropriate role for us. It is for the Iraqi Government and for the Iraqi army to defeat ISIL in Iraq. Indeed, in time I hope, it is for a proper, legitimate Syrian Government to defeat ISIL in Syria. Where we should be helping is with aid, diplomacy and political pressure and, yes, with our unique military assets where they can help, but it should be part of a comprehensive strategy and should not go over the heads of local people and should not ignore the regional powers, learning the lessons of the past. That is what this debate is about, that is what this motion is about, and that is why I believe that we are taking the right steps.

Industrial Action Update

Jim Cunningham Excerpts

Thursday 10th July 2014 Commons Chamber

[Mr Maude]

I hear what my hon. Friend says; he makes an interesting suggestion. Children being able to attend school on a predictable and regular basis is incredibly important in relation not only to their education but to the interests of their hard-working parents who want to go to work in order to support their families week in, week out. When arbitrary action is called in this way, based on flimsy and outdated mandates, damage is done to children and to their parents.

[Mr Jim Cunningham (Coventry South) (Lab)]

As somebody who has taken part in negotiations and been involved in strikes, I assure the Minister that people are very reluctant to strike. He has to understand that the trade unions are reflecting the concern over the cost of living because the purchasing power of wages has dropped by about 6% over the past three or four years. I urge everybody in the House to stop having a slanging match, because at some point, as the Minister and I know, he will have to sit down with the very same trade unions and negotiate a settlement. I urge him to do so as soon as possible.

[Mr Maude]

I hear what the hon. Gentleman says, but I remind him that negotiations and discussions with the civil service trade unions were due to take place in the Cabinet Office only two or three weeks ago. Sadly, that meeting had to be aborted because the PCS was picketing the premises where the meeting was to take place and none of the union leaders was willing to cross the picket line.