Local authorities cutting voluntary sector disproportionately

Research by Compact Voice has found evidence that local authorities continue to see the voluntary sector as a soft target for spending cuts, with disproportionate cuts common, a worrying lack of impact assessment and engagement, and reductions on spending having an impact on communities who are not being given the opportunity to respond to proposed changes.

They submitted three requests under the Freedom of Information Act to 352 local authorities, seeking information on the following topics:

* The extent of spending from local authorities to the voluntary and community sector through grants and contracts, including changes to levels of funding
* The amount of consultation taking place with the voluntary and community sector, particularly around changes to funding
* The length of notice given to funding changes with the voluntary and community sector
* Whether changes to funding had been made disproportionately to the levels of overall budget reduction experienced by local authorities, through changes to income

56% local authorities reported reducing the amount of grant funding between 2011-12 and 2012-13. 68% of local authorities provided information enabling comparisons about changes in contract expenditure between 2011-12 and 2012-13, which totalled a reported reduction of £60,711,392. 50% of local authorities reported making disproportionate cuts to grant funding for the voluntary and community sector.

Their recommendations as a result are that:

1) All local authorities to provide a single consistent email address to enable clarity and transparency about how to submit an FOI request.
2) Local authorities should make data more accessible using agreed and shared terminology, and regular reporting of information relevant to partnership working.
3) When using grant funding as a specific example of support for the voluntary and community sector, it is clear that the Best Value Guidance is not being upheld. Compact Voice urges CLG and the Secretary of State to do more to ensure that this guidance is being enforced.
4) Local authorities to make explicit reference to potential sub-contracting during commissioning and procurement processes, ensuring that the role of the voluntary sector is recognised.
5) CLG needs to do more to enforce the principles contained in the Best Value Guidance, establishing additional compulsion in how it enforces these principles being upheld.

For the whole report, see Local Authorities and the Voluntary and Community Sector: Investigating funding and engagement (pdf file)