Oral Answers to Questions

Nick Hurd Excerpts

Wednesday 6th February 2013 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

1. How much financial support the Government gave to civil society organisations in (a) 2009-10 and (b) 2012-13 to date.

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

It is estimated that the Government committed £13.9 billion to general charities in 2009-10. As the hon. Gentleman will know, data for 2012-13 are not yet available.

[Hugh Bayley]

Thousands of people in every one of our constituencies depend on the services provided by voluntary bodies. The National Council for Voluntary Organisations estimates that funding for the sector will fall by £3.2 billion during the current Parliament, while the Charities Aid Foundation says that private giving to charities has fallen by 20%. The big society is shrinking. How are the Government going to give it the resources it needs to provide services for our constituents?

[Mr Hurd]

The Government are doing a great deal to support our charities. We are encouraging giving, volunteering and social investment, and we are trying to make it easier for charities to help us to deliver public services. There is less money around as a direct consequence of the actions, and the fiscal incontinence, of the Government whom the hon. Gentleman did not adorn. We all have a role and a responsibility to support our charities, but this Government are doing their bit.

[Andrew Gwynne (Denton and Reddish) (Lab)]

That very same research by the Charities Aid Foundation clearly showed that 85% of respondents were concerned about the future financial viability of charitable giving. In view of the Minister’s response to my hon. Friend the Member for York Central (Hugh Bayley), may I ask why he does not share those concerns?

[Mr Hurd]

I do not need any lectures from Labour Members about the extent of the pressure that the charitable sector is under. At a time when resources are very constrained, the Treasury has introduced new tax incentives for giving, including the gift aid small donations scheme. Between them, those incentives will be worth hundreds of millions of pounds to the sector during the current Parliament. We are providing match funding for giving, and investing in new and innovative ways of encouraging it. The Government are showing a great deal of creativity in trying to connect people with the chance to give to and support charities in their communities.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that the Kent Air Ambulance, the Pilgrims Hospice in Canterbury and homelessness charities such as Porchlight and Catching Lives demonstrate that there is a healthy sector in Kent? Does he also agree that the most successful elements of the charitable sector are those that raise the bulk of the funds themselves—with some help from the state—rather than the client organisations whose number increased under the last Government?

[Mr Hurd]

My hon. Friend, who is a tireless supporter of charities in his constituency, has raised an important point. It is worth reminding the House that 75% of charities receive no income at all from the state, and that 80% of the public funding that goes to charities goes to organisations with incomes of more than £1 million. We are actively trying to encourage more charities to live within their means and raise their own money by promoting the kind of giving that I mentioned earlier.

[Penny Mordaunt (Portsmouth North) (Con)]

2. What recent progress he has made in increasing capacity in the voluntary and community sector.

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

The Government are doing a great deal in trying to increase the capacity and capability of the sector. One of the most important things that we have done is launch the world’s first social investment institution, Big Society Capital, which will have £600 million on its balance sheet. That will enable it to increase the social investment market and make it easier for charities and social enterprises to gain access to capital.

[Penny Mordaunt]

Will my hon. Friend congratulate the newly formed Wymering Manor Trust in my constituency on securing the manor as a community asset? In stark contrast to the smooth running of that transfer, the obstacles that the community have encountered in trying to buy out Portsmouth football club, and the culture that they have encountered in the world of football, have been dreadful. What more can be done to help fans to own and govern their local clubs, and to stop football being a big society-free zone?

[Mr Hurd]

I am delighted to congratulate the trust, not least because I understand that it is chaired by Conservatives. Let me also wish the supporters of Portsmouth football club well in their endeavours. The Government are trying to help communities to realise their dreams, and if there is anything that our Department or Big Society Capital can do to support that community, my hon. Friend must let me know.

[Mr Dennis Skinner (Bolsover) (Lab)]

I think that there is a different story. I visited the office of Fairplay in Derbyshire the other Friday and met the people there who look after, for instance, disabled teenagers. I have also visited various other voluntary organisations. Their story is that they are being cut left, right and centre, and are having a job making ends meet. When will the Government support the voluntary workers who are trying to rescue those people, and to help all kinds of individuals? This really has reached a chronic stage. Get something done!

[Mr Hurd]

We are doing a great deal. I totally accept what the hon. Gentleman says: there is a lot of pressure on charities in all our constituencies. We all know that there is less money around, but I would like to hear a little more honesty and recognition from the Opposition Benches as to why the cuts in public expenditure are necessary. They are the direct result of the fiscal incontinence of the hon. Gentleman’s party’s Government.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

As the Minister reflects on the capacity of the voluntary sector, he will surely consider in particular the capacity of the Charity Commission—which has been cut by a third on his watch—to prevent charities such as Cup Trust from being used for huge levels of tax avoidance. Is the Minister convinced that the new head of the commission understands the seriousness of the situation, and is a cross-Government plan now in place to prevent such a repeat?

[Mr Hurd]

Yes. Under this Government, we have sent a very clear message to the Charity Commission that we expect it to hunker down on its core responsibility of regulating the sector and protecting its integrity, and, under the new chairman, we expect that to happen.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

3. What recent discussions he has had with the Chancellor of the Exchequer on ensuring that companies in receipt of Government contracts do not engage in tax avoidance schemes.

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[Kris Hopkins (Keighley) (Con)]

9. What progress he has made on his plans for the National Citizen Service.

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

I am delighted to say that we think that almost three times more young people took part in NCS this year and I hope that the whole House will join me in congratulating those young people, who between them contributed some 750,000 hours of community service in their local areas. The number will grow again this year and teenagers can sign up at www.ncsyes.co.uk.

[Kris Hopkins]

In an era when young people must take every advantage to give themselves a competitive edge, does my hon. Friend agree that the NCS furnishes graduates with the skills that will attract future employers?

[Mr Hurd]

Yes, I do. Young people and employers are telling us that. They recognise that the NCS helps young people develop the character skills, leadership, communication, teamwork and self-confidence that will help them succeed in the workplace. That is why we are so proud to support it.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Minister agree that the NCS ought to go hand in hand with paying attention to first-class citizenship in our schools? Is he aware that citizenship in schools has been run down to almost nothing?

[Mr Hurd]

That is under review by the Department for Education, but I stress that NCS and programmes like it complement what is going on in schools to build the confidence of young people and change how they feel about what they achieve. They are enormously valuable.

[Jason McCartney (Colne Valley) (Con)]

10. I was delighted to attend Royds Hall school last year to see dozens of youngsters who had been inspired to sign up for the National Citizen Service. Can the Minister assure me that this fantastic scheme will be rolled out not only across my constituency, but across the rest of the country this year?

[Mr Hurd]

My hon. Friend is a tireless champion of NCS in his area, and I am delighted that we will shortly announce plans to expand the service this year. It will expand considerably in his constituency and other areas, and I encourage colleagues to tell parents and young people about it, and to direct young people to the website, ncsyes.co.uk.

[Toby Perkins (Chesterfield) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Graeme Morrice (Livingston) (Lab)]

T4. Research published by the Charities Aid Foundation found that one in six charities feared having to close this year, putting at risk the services on which many vulnerable people rely. Will the Minister tell the House what action the Government are taking to prevent charities from going to the wall?

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

The Government are doing a great deal to encourage giving in this country. The Treasury has introduced new tax incentives for giving, and is working hard to make gift aid work better for the charity sector. The small donation scheme is looking at how gift aid can work with digital giving, and we are looking at how we can make payroll giving work much more effectively. Across a range of areas, the Treasury and the Cabinet Office are working hard to make sure that charities get the support that they need in these difficult times.

[Andrew Bridgen (North West Leicestershire) (Con)]

T9. What monitoring arrangements for taxpayer-funded trade union representatives did my right hon. Friend discover after the general election, and what is his policy on this matter?