Communities: Charities and Volunteers Debate

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Department: HM Treasury
Wednesday 13th February 2019

(5 years, 2 months ago)

Commons Chamber
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Mims Davies Portrait Mims Davies
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It is right to work with local authorities and community groups so that we do not stop people volunteering. We should be actively encouraging people and giving them a chance to shine.

Finally, on youth services, the civil society strategy included a commitment to examine the guidance given to local authorities to provide appropriate local youth services. Through such efforts, we will help people to be more active in their communities, and we have promised a review.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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Will the Minister give way?

Mims Davies Portrait Mims Davies
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I am going to conclude, because I will be in trouble otherwise.

Despite the challenges in our growing and changing communities, as Members will know from their constituencies, civil society represents an opportunity to come together. The British people are the most generous, enterprising, imaginative and downright determined people in the world. As a Member of Parliament and a charity trustee and fundraiser, I know what it takes to be part of that, and I salute people across all constituencies, including Eastleigh, for what they do. I look forward to hearing from people about what is going on in their communities. Civil society is the best tool we have to connect our communities, to boost the economy and to make us happier, and we can work together to connect our communities further.

Steve Reed Portrait Mr Steve Reed (Croydon North) (Lab/Co-op)
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I listened with interest to the Minister’s warm words, but I suspect that we will hear much this afternoon about the gap between the rhetoric and the reality in the Government’s approach to civil society. Ever since they were elected, this Government’s method has been to underfund, undermine and sideline the sector at every opportunity. That is a tragedy, because civil society, including the charities, volunteers and community groups that are part of it, play a critical role in reconnecting the communities that this Government have divided.

There is a real mistrust of politics and politicians in our country, which is not surprising. A decade of austerity has ripped the heart out of communities and seen the destruction of shared community spaces. Good jobs have been lost to automation. Once thriving industrial towns have been left to decline. Inequality has grown wider while the economy has grown bigger, because a few at the top have grown richer at the expense of everyone else.

The politics that did all that needs to change. People want back control over their own lives. It is no longer enough for any group of politicians to stand up and tell people to trust them to have all the answers. Trust cannot be a one-way street. People will not trust politicians until politicians show that they trust people enough to open power up to them directly. We need a new politics that is big enough to meet the challenges of our age and responsive enough to meet the specific needs of every community.

At the heart of that are questions about power. Who has it? Who does not? How do we open it up to everyone? In this digital age, with a world that is changing so fast, it is clear that we cannot solve tomorrow’s problems with yesterday’s thinking. That is where civil society comes in, because it offers a way for people to participate on their own terms. It connects communities so that they can exercise the power that lies latent within them. Community-led organisations are a key part of how we can make our system more responsive and more democratic by rebuilding politics around people and putting real power in people’s hands. It once felt like the Conservative party was on to that with its big society agenda, but it withered before our eyes into a crude attempt to replace paid professionals with unpaid volunteers. Now, the Conservatives do not talk about it at all.

Let us look at how much has vanished under this Government: 428 day centres, 1,000 children’s centres, 600 youth centres, 478 public libraries and countless lunch clubs, befriending services, community centres and voluntary groups. Those places where communities came together to act have all gone.

Rushanara Ali Portrait Rushanara Ali
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Does my hon. Friend agree that the cuts in youth services have been particularly devastating? Although the interventions to support the National Citizen Service have been welcomed in many areas, the reality is that the £1 billion or so that has been spent in that arena has not been matched by support in other areas to help young people get on to successor programmes, to meet their needs and to ensure that they have genuine opportunities to take part in positive activities, rather than get caught up in crime and other risks.

Steve Reed Portrait Mr Reed
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My hon. Friend is absolutely right. As I said, 600 youth centres have closed, and all the activities that could have gone on in them have been taken away. That is a crying shame.

Sadly, the Government have not finished with that agenda; there is worse to come. Their new so-called fair funding formula will remove deprivation levels from how funding is calculated. It will take even more away from the very poorest and will weaken the very communities in which the need to tackle poverty, youth crime and homelessness is greatest. Communities cannot organise, act or assert their voice if the Government keep ripping away the resources they need to do those very things.

The Government passed a lobbying Act that gags charities and prevents them from campaigning. Ministers individually have put gagging clauses in contracts to silence charities and prevent them from criticising their personal failures as Ministers. The Government have discouraged volunteers in the UK by not recognising their work for national insurance credits. They announced a plan for paid time off work for volunteering, but it fizzled out into absolutely nothing.

We are a month and a half away from Brexit, but the Government have still not told us how they will replace lost EU funding for charities or how the shared prosperity fund will work, despite the fact that the Opposition have been asking about it for months. The Minister trumpets the new funding—she did so this afternoon—but she fails to acknowledge that it is a tiny drop in the ocean, compared with the billions that the Government have cut. They can work out the huge financial value of what they have taken away, but the social value that they have destroyed is incalculable.

Despite the cuts and the Government’s failure to open up power, people are doing amazing things in their communities, and are stepping in to help the victims of Government funding cuts. I pay tribute to the food banks and homeless shelters which, in such a wealthy country, we should never have needed. There is a wonderful, rich, emerging practice of sharing, co-operating, collaborating and participating in this country. People’s ingenuity and the creativity in our communities cannot and will not be beaten back, but it is fragile. It needs support and protection. It is clear that the Conservatives will never offer that, but Labour will.

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Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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I start by declaring an interest, because I will refer to organisations in which I am involved. I am a patron of a charity called Futureversity, co-founder and chair of the Uprising leadership charity, and co-founder of the One Million Mentors initiative.

We need a lively, independent, vibrant and innovative civil society sector, as many Members have said. Volunteering and charitable activity is a critical foundation of our society and the hallmark of a healthy society and economy. The sector must be underpinned by both Government and philanthropic funding and donations encouraged by incentives such as Gift Aid, which was introduced by the Labour Government. I hope that this Government will consider other imaginative ways of encouraging donations.

No society is truly healthy if the high fiscal rewards for entrepreneurship or investment are not matched by a strong sense of social responsibility and bonds of reciprocity. Charities and volunteers work tirelessly, especially in the current climate, to create a fairer society, to address environmental challenges in our communities, to tackle poverty and inequality and to address social justice challenges. The Charities Aid Foundation found that 80% of UK adults think that charities play an essential role in their local community. Britain is a better place thanks to philanthropy, charity and voluntary activity.

My constituency is famous for volunteers, community organisations and old institutions, such as Toynbee Hall, which employed Clement Attlee before his entry into politics. He became mayor of Stepney in my constituency, then a Member of Parliament in the area, and later one of the most successful Prime Ministers of the past century. The east end of London has a great heritage of charitable activity and entrepreneurship, and that has continued. London’s Air Ambulance, which serves people across our capital, is based in my constituency, and many people do not realise that it is a charity. We have the Osmani Trust, the Attlee Foundation, the Young Foundation, City Gateway, Muslim Aid and many others. The ones that I am not mentioning will be offended, but there are hundreds of them, so I am unable to name them all. The fact is that charities should not replace the functions of the state; what they do must be complementary. They should enrich our society, not put plasters on the wounds inflicted by the Government.

This week, the Secretary of State for Work and Pensions finally admitted that the Government’s universal credit policy has led to an increase in food bank use. We know that food banks do amazing work, but in a civilised society they should not have to do it. Their funding could be invested elsewhere if the Government addressed those issues. The Government should support charities, but not expect them to substitute for what public services should be doing.

I want to draw on my experience of starting up charities. I had the good fortune of working for the author of the 1945 Labour manifesto, Michael Young, in his later life. It was the best kind of apprenticeship in politics and social entrepreneurship. I saw that we can be imaginative in addressing the big social challenges in our country by using insight, observation and research, but that means that the Government must fund innovation. I appeal to the Minister to do that.

I also appeal to the Minister to address some of the issues relating to unspent or ineffective funding, such as the £10 million provided to the National Citizen Service for unfilled places. We need more effective spending in the charitable sector, which desperately needs support. It was promised that £425 million that was invested in the Olympic village would be returned to the charitable sector. That money could be used immediately by charities that desperately need help to address issues such as youth crime.

I was able to set up charities to help young people. I hope that this Government will continue to support them. If they do, there will be direct benefits to our economy. I am grateful that we are having this debate, and I hope the Government continue to invest in that very important sector.