Community and Voluntary Sector

Lord Bassam of Brighton Excerpts

Thursday 31st October 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, I begin, as others have done, by congratulating the noble Baroness, Lady Morgan, on initiating this debate. Apart from being a highly effective Minister in the last Labour Government, she has for many years skilfully led Breast Cancer Now. Her work has undoubtedly saved many lives and raised awareness of this awful disease.

I also declare my interest as a co-director of Place, working for Business in the Community, a role I share with the noble Baroness, Lady Valentine—I am told, the oldest job-share in the UK. We are the UK’s largest and most influential responsible business network dedicated to building a fairer, more sustainable world. We work in the UK’s most deprived communities, mobilising leading figures from FTSE 100 companies to transform the lives and opportunities of millions. Led by our inspirational CEO, Mary Macleod, we aim to operate in 50 places by 2032, focusing on literacy, training, food poverty, upskilling and capacity building. Our business-led boards focus on physical regeneration projects like housing and transport.

However, we are one small part of the eco-structure of the 166,000-plus voluntary organisations identified by the NCVO. Although a major charity in NCVO terms, we have fewer than 250 staff. In a “bang for buck” ratio, our impact, like that of other voluntary organisations, is immense. The sector is estimated to contribute nearly £18 billion to the economy and employs, roughly speaking, a million people but mobilises over 14 million a year as volunteers. Our impact is unquantifiable.

Without the voluntary sector, community cohesion, the drive for social justice, economic fairness and greater equality would have long ago withered. We campaign, provide life-saving services, change lives, and shape opportunities. Our research changes perceptions.

However, we should not kid ourselves that everything in the voluntary sector is rosy or that we could not do better. Worryingly, there are signs that our work and impact may be faltering. A recent DCMS survey found that participation rates in formal volunteering have fallen. The NCVO too found a significant drop-off. Most concerning is the decline in young people volunteering, down 7% in 2024.

Like others, I welcome the Prime Minister’s announcement of a fundamental reset. His aim to unlock and harness the sector’s dynamism, innovation and trust is timely. The covenant framework, incorporating high-level principles of recognition, partnership and participation is most welcome, and I applaud the desire to engage across government.

The strength of voluntary organisations is, as others have said, our ability to be different, to innovate and to challenge. These strengths have been sorely tested over the last 14 years, as government has looked to us to solve its problems. Too often, we have been seen as a cheap option or substitute for government intervention.

Lisa Nandy was right when she said that we should be recognised as a “trusted partner” but, to fulfil that role, we must find ways to collaborate better, maximise our impact, and acknowledge that there is overlap and duplication. As a quid pro quo, we need long-term funding commitments from central government and our local and regional partners. UK businesses, like BITC’s partner, Aviva, could be better incentivised to support communities.

Finally, as a piece of advice to the Government, while there is no free money on offer to fund initiatives, there are dormant assets. Gordon Brown’s scheme was given a boost by the last Labour Government, but it barely scratches the surface in unlocking assets tucked away in the banking, insurance and financial systems that could provide billions for social purposes. Will the Minister urge the Government to reconvene the commission that examined options for expanding the scheme? There is an estimated £800 million coming through the new scheme, and it could fund the community wealth fund that provides essential services for long-term investment. There are other funds that could be tapped from dormant assets: £1 billion in unclaimed gift cards; £3 billion in Amazon gift cards; and Sadiq Khan estimated there is a quarter of a billion pounds in balances on Oyster cards. Unused assets like these could be unleashed to transform the lives of millions of people across the UK and unlock the real potential of our civic institutions.

[Baroness Blake of Leeds (Lab)]

My Lords, can we just be mindful of the four-minute advisory time, please?