London funding shake-up could see hundreds of voluntary sector
organisations axed
8 November 2010
Plans to give individual London boroughs control of a large
tranche of funding for the not for profit sector could see hundreds
of projects axed, Unite, the largest union in the country, warned
today (Monday, 8 November).
Unite believes that proposals for the London Councils’ Grants
Committee (LCGC) to repatriate a significant proportion of their
funding to individual councils will see projects closed down, as
there will be no ‘ring fencing’ of the cash.
Doug Nicholls, Unite National Officer for the Nor for Profit
sector - which has 20,000 voluntary sector members in the capital -
said: ‘Plans by the LCGC will let Londoners down and be another
nail in the coffin of a strategic shared approach to solving some
of the capital’s most entrenched social problems.’
‘A worst case proposal could see funding for 400 projects
end on 31 March next year and future funds disappearing into
the overall councils’ budgets with no ring fencing or guarantee
that it would go to the voluntary sector to support the most
disadvantaged.’
Unite is calling on all London councils to retain a London-wide
funding scheme for a range of vital services provided by voluntary
sector organisations. The LCGC is likely to take a decision on its
future on 25 November, after the present consultation process has
ended.
Unite has written to London’s Mayor, Boris Johnston and Labour’s
candidate for the 2012 mayoral elections, Ken Livingstone seeking
their responses to this proposal.
Currently, London councils invest £28m a year in voluntary
organisations on behalf of all the London councils. They fund more
than 400 organisations, with individual grants ranging from between
£5,000 and £500,000.
This council’s funding is provided by the London Boroughs Grants
Scheme, which was established by the 1985 Local Government Act. The
scheme is funded and governed by all 32 London boroughs and the
Corporation of London.
It enables London’s local authorities to fund voluntary
organisations working in more than one borough, sub-regionally or
across the capital to meet the needs of London as a whole. The
operation of the scheme is managed by the Grants Committee which
comprises 33 representative members, one from each of London’s
local councils.
Doug Nicholls said: ‘Our members have worked with this excellent
grant scheme for 25 years and it has made a real difference to
Londoners, for example:
- reduced social exclusion, poverty and disadvantage,
particularly through funding for projects working with children and
young people and people with multiple needs, providing legal and
advice services, promoting employment and decision making
opportunities.
- promoted equality and reduced discrimination, particularly
through funding for projects providing services to people with
disabilities, black, minority ethnic and refugee communities,
addressing violence against women.
- increased access to London’s opportunities, particularly
through funding for projects promoting training and employment,
regeneration, educational, cultural and decision-making
opportunities, developing outer London infrastructure and improving
transport and the environment.
‘With the Comprehensive Spending Review having created a hole of
about £1.5 billion for local authorities, you can see they will be
tempted to claim back any penny from anywhere. But this will only
lead to the further fragmentation of essential services in London.
It will not be cost effective.’
‘To retreat from this would be to retreat into a callous,
chaotic postcode lottery and to abandon some of the most cost
effective support services for our capital.’
-ends-
Notes to Editors:
For further information, please ring Doug Nicholls on 07970 345
381. doug.nicholls@unitetheunion.org
Unite communications officer, Shaun Noble on 07768 693940
The London Councils Grants Committee is consulting on its future
arrangements. Consultation ends on 10 November.
Unite the union has responded to the consultation supporting
current arrangements. This reflects the views of thousands on
members at the frontline of delivering these funded services. Such
services include help lines and support services for children and
young people, victims of violence, alcohol and substance misusers,
health and social care agencies, homeless support groups, culture
and tourism promotion, legal and advice services to the most
vulnerable.
