Big Society

Debate between Richard Fuller and Stephen Pound

Monday 28th February 2011 Commons Chamber

[Richard Fuller (Bedford) (Con)]

It is a great pleasure to speak in the debate and a particular delight to follow my hon. Friend the Member for Warwick and Leamington (Chris White), who counts my mother, father and brother among his constituents. They routinely tell me what an excellent job he is doing as their Member of Parliament.

[Stephen Pound]

Get on with it.

[Richard Fuller]

I shall, indeed.

It has been interesting to hear people’s different perspectives on what the big society means, so at least we know that the big society is something. We might not agree on our perceptions of it, but I am with my hon. Friend the Member for Erewash (Jessica Lee) in being quite comfortable with that difference of approach. For me, however, the point of the big society at this moment is about building institutions—other than state bureaucracies—that can deliver effectively the social goods and services that we all desire.

The bureaucracy was, as we have heard, always only one model, not the only model, for the provision of social goods and services, but over the years it has come to dominate the space in social goods provision. In so dominating that space, it has created other organisations that are less sustainable and resilient because of their dependence for their continuation on state funding.

Under the previous Government, new forms of charitable organisations evolved, and in fairness institutional forms will evolve over time. It takes time to create institutions; we have only to look at the construction of different forms within the private sector and other aspects of organisational theory.

It is also important to recognise the imbalance between bureaucracies on the one hand and charities, social enterprises and so on, on the other. Over the past 10 years, charities have in many ways been co-opted by the Government. If we look at the earned income of charities in 2000, we see that 40% came from statutory Government sources. Within just seven years, that percentage had risen to 52%. How does that help the independence of those institutions? How does it help to create resilience within them?

Not all charities are the same, however. The hon. Member for Ynys Môn (Albert Owen) heralded the women’s institute as the paragon of a big society organisation, but as Government Members know, women’s institutes do not claim Government money at all. Smaller charities have a far greater reliance than larger charities on individual donations: 64% of the income of very small charities comes from voluntary donations and private sources, and only 5% comes from statutory sources. For the large charities, those that are pretty good at cosying up to the Government, 34% comes from individual sources, and 38% comes from Government sources.

That mirroring of the state can also be seen in senior executive pay. On many occasions in the House, we have heard people talk about the growth in senior executive pay in local and national Government, and, as we look to the big society, people will have questions about whether the chief executive officer of Barnardo’s should be paid £166,000 a year, whether the chief executive of Action for Children should be paid £130,000 and whether we should really allow the chief executive of World Vision to sneak in at £99,994 a year without pointing to it. These are areas where we have to say that we need change. Do we see these social organisations as institutions in their own right or just as agents of the Government? If it is the former, we need to enhance their institutional strength.

I have some suggestions, many of which are already emanating from our Government. It is sometimes argued that giving people a tax deduction for their charitable donation will have the same result as gift aid, but I think we should change the system. People will respond more positively if they know they are going to get a tax deduction for their charitable donation. We do it for venture capital trust contributions and for the enterprise investment scheme, so why cannot we change the system to do it for charitable donations too? We need to look at ways of simplifying the rules and regulations. In particular, can we ease the rules on mergers and acquisitions between charities so that they can be done more effectively? Looking at the big society bank, can we ensure that we limit its scope to focus on those who are most important for society as a whole?

Most importantly, can we use this opportunity to create centres of excellence for non-profit bidding expertise? ConsortiCo in my constituency has brought together 35 charities to help them to bid for local government contracts. That is important, because many charities find it hard to access Government contracts. These organisations will become the platforms for outcome-based financing in future, and we need local centres of excellence to appear with their local government authorities in order to gain the experience of writing contracts that can be used for outcome-based financing. Fundamentally, the fight between charities and bureaucracies is not fair because bureaucracies hold all the cards. If we do not give charities the strengths to compete effectively with bureaucracies, we will not achieve the big society at this time.

It is a challenge for Conservative Members to implement the changes of the big society in this period of office, and it will govern and colour the context of our time. For Labour Members, however, the challenges are even more significant. As my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) said, they have to decide whether they want to continue to move forward with the reform agents in social enterprises and charities or to remain as guardians of the status quo.