Government deficit reduction programme fairness and
Document Sample
Government deficit reduction
programme: fairness and responsibility
August 2010
NAVCA (National Association for Voluntary and Community Action), The Tower, 2 Furnival Square, Sheffield S1 4QL
Tel 0114 278 6636 ● Fax 0114 278 7004 ● Textphone 0114 278 7025 ● navca@navca.org.uk ● www.navca.org.uk
Registered charity no. 1001635 ● Company limited by guarantee ● Registered in England no. 2575206 ● Registered office as above
NAVCA (National Association for Voluntary and Community Action) is the national voice of local
voluntary & community sector support and development organisations in England. We aim to
ensure communities are well served by the local voluntary and community sector by supporting
our members and their work with over 160,000 local groups and organisations.
NAVCA believes that local voluntary and community action is vital for healthy and inclusive
communities.
We provide our members with networking opportunities, specialist advice, support, policy
information and training. NAVCA is a vital bridge between local groups and national
government.
Our specialist teams take a lead on the issues that matter most to local voluntary and
community sector support and development organisations. We influence national and local
government policy to promote local voluntary and community action.
NAVCA's work is guided by the values of equality of opportunity, participation, co-operation and
democratic involvement. In supporting the local voluntary and community sector we help to
combat poverty, disadvantage and discrimination, and improve the quality of life for
communities, groups and individuals.
NAVCA
The Tower
2 Furnival Square
Sheffield S1 4QL
Tel 0114 278 6636
Fax 0114 278 7004
Textphone 0114 278 7025
navca@navca.org.uk
www.navca.org.uk
Registered charity no. 1001635
Company limited by guarantee
Registered in England no. 2575206
Registered office as above
2
NAVCA welcomes the opportunity to respond to the letter from the Secretary of State for
Communities and Local Government inviting suggestions on how the Government might
manage the deficit reduction programme in a fair and responsible way.
Our response we have used information received from our members, which is correct at the
time of writing but the situation is changing all the time and we would also be happy to provide
updates or supplement this information in future if necessary. If our response raises particular
issues about which you would like more information please do not hesitate to contact NAVCA.
We would welcome the opportunity to discuss our response in detail.
1. Localism: improving transparency and accountability
Local voluntary action has an important part to play in reinvigorating local governance. Indeed,
a healthy and thriving civil society, of which local charities and community groups are a key
element, is, in our view, an essential precondition to democratic renewal.
Voluntary action makes a significant contribution to the quality of life for local people through
direct community-based action, creating a citizen-centred alternative to public and private
services provision and offering a voice for local people, especially the most vulnerable and
disadvantaged. NAVCA believes that the civil society’s role in the governance of public services
and the development of social capital are essential elements of a fair and just society where
every citizen is able to participate in the democratic process.
A strong network of local charities and community groups can put in place some of the essential
elements of a fair and just local democracy:
Building social capital and civil renewal – to increase the confidence and ability of individuals
and groups to get involved in activities that bind communities together.
Effective community engagement – developing a voice for communities to enable them to
participate in social action and to increase the accountability of local public service
providers.
Improved service delivery – to ensure that local communities can properly influence and,
where appropriate, deliver services that address the needs and priorities of local people.
NAVCA is a cautious supporter of localism; implemented well it will enhance civil society and
promote social action. Our caution stems from a concern about how to ensure that vulnerable
people living in a particular part of the country do not have access to services that those
elsewhere might take for granted, undermining attempts by local people to build the Big Society.
An example of where localism has worked is Merton, where the patient long-term development
work of Merton Voluntary Service Council helped local people bring the Making Colliers Wood
Happy initiative to life. An area that was predominantly white working class has changed over
time until the ward now has a population that is now 50% from black and minority ethnic and
refugee communities. As the demography changed communities became isolated, with young
3
people hanging around with nothing better to do fuelling older people’s fear of crime alongside a
general feeing that people were powerless to change things. A few local people decided to take
action and Merton VSC was on hand to help: linking the community with key council staff,
arranging small grants to get things going, dealing with paperwork (necessary and
unnecessary) and offering advice. As a result a little used local park was revitalised with little
league football and tennis coaching for the children and young people previously left to
congregate on street corners. Hundreds of people of all ages from across this diverse
community get together to enjoy ballroom dancing, salsa and ballet, singing, knitting, sewing,
bell ringing and tai chi, there are reading groups, a rambling group and even a ukulele band! All
this is now supported by local fund-raising.
It is clear that the people of Colliers Wood would have found it much harder to take action
without the experience and local knowledge of Merton VSC.
By contrast the speed and scale of recent spending cuts across the public sector has eroded
localism, damaging to the foundations of the Big Society. NAVCA members across England are
reporting a deluge of one-size-fits-all funding decisions by local authorities that are already
adversely affecting local voluntary and community action1. For example:
Voluntary Action Wakefield was informed in July that it would lose the majority of its local
authority funding with immediate effect. This means that the organisation no longer has
capacity to promote and support volunteering, or to offer practical advice on ICT and
funding to local voluntary and community organisations.
Nottingham’s Local Strategic Partnership has slashed £100,000 from its funding to the
local VCS for community engagement work, drastically reducing initiative to involve local
people in decision making.
Home-Start UK faces the complete closure of seven local services and drastic
reductions in a further thirteen. This means that around 1,000 families will lose the
personalised volunteer support that is helping them to cope with the challenges of
raising young children and giving them the best start in life.2
Progress on the Big Society requires localism to be about much more than devolution to local
government: as the Coalition’s programme for government set out, localism requires “the
radical devolution of power and greater financial autonomy to local government and
community groups” (our italics). Localism must empower local people and promote the social
action that lies at the heart of the Big Society in precisely the way the people of Colliers Wood
were able to do with the right support.
1
NAVCA (2010). Government deficit reduction programme: NAVCA members’ views. Submission to Francis Maude
and Nick Hurd, August 2010.
2
Data from Home-Start UK, 31 August 2010. Closure interpreted as loss of 2 paid posts, reduction as loss of 1 paid
post.
4
We propose that each local authority should be required to produce a social action report,
describing the positive outcomes and lessons learned. Such a report should set out what the
local authority has done to:
encourage and support local community engagement and empowerment;
ensure the support and resources (such as advice, information, training, start-up grants,
peer-support) are available to local people;
make sure that people have access to independent support for social action;
ensure that it hears the voices of all local people and, crucially, report back to them;
enable community groups had taken on responsibility for improving their local
neighbourhood;
develop and encourage social action across all communities and neighbourhoods;
assess the value for money, and benefits to the local community of its support;
make its social action report easily available to all citizens.
We believe that this would lead to a number of benefits for local people and in so doing promote
the social action that is at the heart of localism:
The local authority’s support for social action would be open and accountable.
Information would be readily available to help anyone who was interested in working with
others in their neighbourhood or local community.
It would inspire local people by showing what could be done.
Practical examples would be available for people to learn from, thereby promoting social
action in other neighbourhoods and communities.
2. Localism: improving public services
Local charities and community groups play an essential part in public service development,
design and delivery. Many were set up to fill a gap in provision or because public or private
sector providers failed to meet the specific needs of some people or communities; as a result
they have a strong track record in user-focused provision. They contribute much to service
delivery, including the knowledge, expertise and capacity to build users’ trust, to meet complex
personal needs and tackle difficult social issues. They offer flexible and joined-up services built
upon the experience and independence that enables them to innovate. Local voluntary and
community action can make a considerable contribution to the commissioning of public
services:
Make sure service users are well-informed about service developments and kept aware
of any changes that affect them.
Campaign for new and improved services.
5
Offer a voice to the most disadvantaged citizens and communities.
Advise public service commissioners on matters of greatest concern to service users.
Contribute to innovation and improvement across the public services by developing and
promoting new forms of service delivery.
Deliver high quality services to communities of place, communities of interest and
communities of identity.
An intelligent approach to commissioning should involve the people who use services at all
stages in the process. Local charities and community groups have an essential role in reaching
communities of place, identity and interest – particularly those from whom commissioners
seldom hear – and supporting their engagement in commissioning. They are uniquely placed to
identify new and emerging needs for services and to find solutions to meet these needs. It is,
therefore, essential that commissioners work with local charities and community groups to
ensure the involvement of communities and people who use services in all parts of the
commissioning process.
It is not enough for commissioners to seek the views of those with whom they are in regular
contact; they need to hear from all sections of the user community. They need to remove any
barriers that may prevent particular groups or communities from shaping services; in doing so
commissioners need to develop arrangements that harness the potential of local charities and
community groups to engage those whose voices are seldom heard in the design and delivery
of services. A good starting point would be to adhere to the eight principles of good
commissioning3 as the basis of local good practice.
Commissioners ought to have a good knowledge of the local charities and community groups
operating in their service area. They need to consider how the commissioning process can
contribute to building stronger communities and how it can encourage collaboration between
local organisations for the benefit of service users and the whole community. They should also
consider all available options for sourcing services and use methods that are appropriate,
proportionate and encourage local organisations to engage in all aspects of the commissioning
process.
Monitoring procedures should be streamlined and simplified without losing proper accountability
for service delivery. The information that public agencies require should be proportionate to the
size of contracts and organisations. The emphasis should be on the quality of experience for
service users.
NAVCA firmly believes that accountability, value for money, and a focus on service users are
essential elements of high quality services. We would expect good funders to design reporting
arrangements that focus on the impact and social value generated and are proportionate to the
funding and the capacity of the organisation being funded. What might be appropriate for a
3
National programme for third sector commissioning – see http://www.idea.gov.uk/idk/aio/6617745
6
major public service contract would not make sense for a modest grant allocation.
Commissioners should satisfy the need for accountability without diverting the focus from
delivery. If not, they can end up reducing the value for money they so rightly seek.
It is perfectly legitimate for a public body to determine, as a result of a proper options appraisal,
that a grant is the most appropriate means of funding a particular service. The National Audit
Office’s Decision Support Tool4 provides a framework for determining the most appropriate
funding mechanism in any given set of circumstances.
To procure the best services to meet local need, service users must be involved in all stages of
commissioning. Local voluntary groups and charities have an essential role in reaching
communities. They are uniquely placed to identify new and emerging needs for services and
find innovative solutions to meet these needs. For the local third sector to fulfil its potential in
designing and delivering high quality public services rooted in the local community,
commissioners should remove barriers, harness the strengths and develop the potential of the
local third sector. The aim should be for public services that fully address local need, which in
the long run saves money.
NAVCA we believe the Government should support the Private Member's Bill introduced to
parliament by Chris White MP, which would “require that public sector contracts include
provisions relating to social outcomes and social value”. This would embed social objectives in
procurement processes and sustain and strengthen good quality local voluntary and community
services. NAVCA is committed to playing its part by helping local public bodies to develop
commissioning frameworks that value the unique contribution local voluntary organisations
make to local service provision.
3. Localism and individual choice
We strongly support the principle of public services that are tailored to the needs of the
individual citizens who use them. Personalisation does precisely this because it requires that
services are designed and delivered from the starting point of an individual’s needs and wishes,
rather than from the perspective of the commissioner or provider.
The concept of offering the users of public services greater influence over the nature of the
service they receive has the potential to transform public services. It represents a fundamental
shift in the relationship between citizens, communities and the state, challenging the notion that
the provider or commissioner knows best. It therefore has important implications for the local
charities and community groups.
Personalisation has the potential to open up new opportunities for smaller, local voluntary
organisations and community groups. Commissioners are responsible for ensuring that service
users have a wider range of options to meet their needs. Services delivered by local voluntary
organisations are responsive, led by service users themselves, embedded in the local
4
See http://www.nao.org.uk/guidance__good_practice/toolkits/better_funding.aspx
7
community and tailored to the needs of individuals because they tend to focus on the person not
the service. It is therefore likely that personal budget holders and direct payment users will want
to use the resources available to them to purchase services from small, local voluntary
organisations and community groups. Commissioners will therefore need to ensure that their
commissioning processes and market development strategies do not drive out smaller, local
community groups.
Success requires users to be fully involved as citizens with rights and responsibilities, where
those who wish it get the support of a community advocate to support them to co-design
services alongside professionals. This requires public services to be more participative so that
people are able to devise their own, bottom-up solutions. The role of support brokers is key to
this and we would envisage a significant role for local voluntary organisations in delivering
support brokerage and advocacy services.
Transforming service systems and processes is not enough; NAVCA wants to see stronger
communities and social networks so that people who need services are able to lead full lives as
citizens, rather than becoming disempowered and disconnected from communities by their
dependence on service systems. We believe there is an inextricable link between public
services, citizen equality, empowerment and strengthening communities.
NAVCA’s members can help local charities and community groups adapt to the changing
environment that personalisation will bring by helping them develop new business models and
by enabling them to:
provide comprehensive, accessible information and signposting to potential service
users, so that they are empowered to make real choices about how they receive their
care and support
work in partnership with commissioners and support brokers to promote awareness of
the services on offer from voluntary organisations and community groups
plan for change, gain a better understanding of their unit costs and respond quickly and
effectively to fluctuations in demand
build service delivery partnerships
help advocacy organisations ensure that they are able to help all citizens
Local authorities have mostly been focussing their efforts internally, with a view to meeting their
performance targets for April 2011. In most areas, there is a need for much better engagement
with the voluntary sector to support the development of the market for personalised services.
There has been insufficient emphasis on raising the level of awareness and understanding in
the voluntary sector and supporting the sector to manage the transition to personalised
services. For example, smaller voluntary organisations need support to address operational
challenges around the move from block contracts to personal budgets, the changes needed to
finance and administration systems, the development of marketing strategies and the
development of partnerships with other providers.
8
NAVCA is offering support to members in helping local voluntary organisations to engage with
the personalisation agenda and identify and respond to the opportunities and challenges it
presents. We are providing information and learning opportunities, sharing good practice and
developing practical resources, such as a personalisation health check tool. To enable local
voluntary organisations to gear up for personalisation and be more involved in shaping it.
4. Localism: supporting civil society
An unfortunate effect of the recent public spending cuts, particularly to grant funding, is the
disproportionate impact on smaller organisations. These are arguably at the heart of the Big
Society, because they are rooted in communities and most likely to inspire people to engage in
social action. Small grants programmes are a low-cost way of supporting voluntary and
community action and cutting them disproportionately reduces social involvement – a short term
measure that will create longer term pain. A typical example of this is in Hackney where the
local authority has proposed a 33% (£250,000) reduction to the Community Grants Programme.
This reduction will result in the loss of 46 jobs and 230 volunteers, meaning a loss of services to
5,600 current beneficiaries of community and voluntary action across the borough. Similarly, for
just £30,000 Home-Start UK can employ a co-ordinator who will support around 30 volunteers to
work with an average of 37 families with 74 young children; the volunteers support families to
become self-reliant and to actively engage with their community5. Without this support, the
families are unlikely to be able to play their part in the Big Society and at worst may need costly
public services such as social worker intervention.
These cuts come at a time when VCS resources are already tightly stretched as a result of
increasing demand for community support as the financial crisis took hold. Citizens Advice
Bureaux have seen an 18% increase in requests for assistance over the past year, with debt,
benefits and unemployment the biggest issues6. Even where communities are able to respond
positively to the idea of the Big Society, the impact can mean a larger workload for voluntary
and community organisations: anecdotally, NAVCA members suggest that requests for advice
on issues such as setting up community-based free schools are on the increase.
We are aware that in the current climate, it is not realistic to argue that these problems could be
solved, and that the Big Society dream could be realised, with more funding for voluntary and
community organisations. Whilst we believe that we are experts in making a little investment go
a long way, and that a small amount of money can be translated into a big difference for local
communities, we are aware that for now the focus must be on working together with the public
and private sectors within the resources available.
We therefore propose two initiatives that, with little or no investment, will contribute to the
creation of the Big Society:
5
Data from Home-Start UK, 31 August 2010
6
Citizens’ Advice (2010). http://www.citizensadvice.org.uk/index/pressoffice/press_index/press_20100517.htm
9
a) Reinvigorating business-community partnership at the local level
There is a long tradition of co-operation between the private sector and community action; the
roots of numerous long-established charitable bodies such as the Joseph Rowntree Foundation
can be traced back to benevolent businessmen and women. Many large companies include
community action in their corporate social responsibility strategies, encouraging staff to
volunteer and fundraise for charities. However, it could be argued that these activities, whilst
laudable, have in some cases lost the link between local companies and local communities.
We would like to see this relationship re-established in the form of pro-bono support from the
local private sector to enable communities to come together and take action. Existing VCS local
support and development organisations can provide assistance with fundraising, registering as
a charity, finding trustees and so on, but often lack the expertise and capacity to advise on
specialist issues such as tax, marketing or managing buildings.
Local voluntary and community groups would benefit from practical, expert advice to help them
to improve and grow. Businesses would benefit from a higher profile, better knowledge of their
local customers, and staff development opportunities. Businesses also need motivating so that
more employees become trustees of local charities and contributors to local payroll giving
schemes. We need to incentivise businesses to give more help in kind to the local voluntary
sector.
We believe that the Coalition Government must actively promote this idea at a national level
and consider financial incentives such as tax breaks to encourage participation. The
Government should call upon the British Chambers of Commerce and the CBI to work through
its members in partnership with local VCS support and development organisations to develop a
pro-bono scheme appropriate to the needs and current level of provision in their area.
We want to see the Government spurring on the private sector so that companies support the
Big Society’s aspirations in every local area.
b) Better management of local relationships
We are concerned that Francis Maude’s call to take into account the balance between the state
and civil society when making policy decisions is falling on deaf ears in relation to local authority
spending cuts. Progress towards the Big Society vision is faltering in the haste to cut budgets,
with local small grants schemes and other VCS funding often seen as an easy and
uncontroversial target.
We believe that, in all communications about budgets and funding decisions, the Coalition
Government must remind its public sector partners about the aims of the Big Society. The
Government must require local government and other public sector bodies to consider the
impact of budgetary decisions on the Big Society aspirations, and to prioritise funding plans that
will support volunteering and community action. There should be a Big Society Champion in
every local council cabinet and on every NHS Trust Board.
10
Alongside this, we call upon the Coalition Government to actively support the modernisation of
the funding environment for the VCS. Initiatives such as Community Shares7 and Social Impact
Bonds8 may offer additional routes to finance for voluntary action, but they are still in their
infancy and will need Government support. We would like to see the Office for Civil Society
charged with testing new models of this sort in local areas to find out whether they offer new
possibilities for resourcing local charities and local voluntary action.
7
http://www.communityshares.org.uk/
8
http://www.socialfinance.org.uk/downloads/SIB_report_web.pdf
11
