Open Public Services White Paper

Debate between Oliver Letwin and Sheila Gilmore

Monday 11th July 2011 Commons Chamber

[Mr Letwin]

Yes, my hon. Friend is absolutely right. That is indeed a point we make very forcefully in the White Paper. It is our intention that a local community group should be able to get to work and do things itself either in its own local neighbourhood or as a service provider to individuals on its own basis in its own way. The means we use to achieve that is ensuring that, if the little providers are excluded from entry to the open opportunities we are creating, they will have redress.

[Sheila Gilmore (Edinburgh East) (Lab)]

If local communities within a city or town decide that they want to take over the local park, how will the budgets be set, will they increase over time, and what will happen in respect of the possible residualisation of, say, the 50% of parks for which a viable service can no longer be run?

[Mr Letwin]

The hon. Lady appears to think that we are talking about amounts of money here, but what we are talking about is how the same amount of money is used. Whatever amount of money is being spent at the moment on a park, we say that the locals should have the right to challenge and to be able to take over the park if they can provide a proper way of running it themselves for the same amount of money—neither more nor less. I would have thought that the hon. Lady shared that ambition with me; it will not cause the problem she alludes to.

Oral Answers to Questions

Debate between Oliver Letwin and Sheila Gilmore

Wednesday 19th January 2011 Commons Chamber

[The Minister of State, Cabinet Office (Mr Oliver Letwin)]

There is no doubt that the cuts that we have had to make as a result of the huge deficits that were piled up in government by the colleagues of the hon. Member for Edinburgh East (Sheila Gilmore) have made and, in the immediate future, will make life difficult for some voluntary and community sector bodies, contrary to the way in which I was misrepresented by the hon. Member for Hemsworth (Jon Trickett). However, we have put in place measures that will vastly increase the opportunities for voluntary and community bodies to participate in public service delivery and earn money by doing so, and we have established a £100 million transition fund.

[Sheila Gilmore]

Will the Minister explain to the House what discussions he has had with his Treasury colleagues about extending and reforming community interest tax relief, which many social enterprises want to happen? That might be a way to enable social enterprises to flourish, despite the reductions that are contemplated.

[Mr Letwin]

Tax relief is, of course, an issue for the Chancellor of the Exchequer at Budget time, and I would not dream of trampling on his front lawn. The hon. Lady should recognise two important facts. First, charities already receive about £3 billion in tax relief, including a VAT exemption for trading activities for their main purposes and gift aid. Secondly, we are reluctant to create an unlevel playing field between social enterprises that are not charities and the private sector, because we want to ensure that there is a fair contest between the two and that social enterprises are fully involved in competing for public service delivery.