The Compact and spending cuts

Information from the NCVO Public Service Delivery Network:

Compact Voice is concerned that the Government's recent announcements of significant spending cuts have led to local programmes being abandoned, delayed payments to voluntary groups, and have taken place without prior discussion. The charity, which represents the voluntary sector in England on the Compact, is writing to key Ministers, non-Departmental public bodies and other agencies to ask for assurances that they will carry out any cuts or reviews of funding in a Compact-compliant manner.  

Cuts have included funding for Regional Development Agencies, Working Neighbourhood Funds and Future Jobs Fund, which will have a real impact on voluntary organisations and communities. Recently, Hull CVS had £200,000 of funding from the Future Jobs Fund withdrawn without consultation, which will directly affect young people being able to find work in Hull. And alarmingly, Voluntary Action Westminster was also informed that £3 million of funding would be cut without consultation, the vast majority of which would have been used to support local front-line services.

Bernard Collier, chief executive of VAW said:

"I am very disappointed. This will affect the most disadvantaged in our community. There should have been a better process which engaged with the community sector - the very organisations at the heart of the Big Society, rather than this scorched-earth approach we're seeing."

While there is recognition of the need to address the national budget deficit, these particular cuts have been done with little reference to the Compact - the long-established agreement between the public and voluntary sectors. At a time when the Government has pledged to strengthen both the sector and the Compact, it needs the voluntary sector more than ever to sustain communities through the difficult times ahead, and should therefore work with and consult them over cuts that are going to affect them.

Unilateral cuts are not a necessity, and can seriously undermine the ability of partners to deliver cost-effective services to the most needy parts of the population. In some areas, significant cost savings have already been found through a joint approach; in Merton earlier in 2010, flat rate percentage cuts across the board were avoided in this way, and all priorities were protected through joint impact assessments. As a result of this transparent and fair process, all parties were satisfied with the results and a forward funding planning project has been launched by the Council to involve local groups in budgeting. This model is already being reproduced in other areas such as Thurrock, where future funding decisions will also be jointly made.

Simon Blake, Chair of Compact Voice, said: 

 "Today I have written to all ministers and other key decision-makers to ask for assurances that they will follow the Compact when thinking about cuts. Proper discussion with the sector is not a luxury for good times, it is a necessity to ensure that the best possible decisions are made during this difficult time as well."

Compact Voice represents the voluntary and community sector on the Compact, the agreement between the voluntary and public sectors which ensures better partnership working and outcomes for communities.

Please direct all enquiries to Dugald McNaughtan, Communications Officer on 0207 520 2486 or Dugald.Mcnaughtan@compactvoice.org.uk