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Labour review relationship with VCS

19 September 2011

According to Third Sector magazine and the Labour Party's Policy Review Group, the Labour government lacked clear aims for the voluntary and community sector.

A panel of MPs, peers, academics, charity chiefs and umbrella bodies says the party must make up its mind on public services. Third Sector magazine have summarised the policy review discussions which members of the North West Infrastructure Partnership (NWIP) were able to contribute to earlier this year:

A PARTY IN SEARCH OF A POLICY

"A panel of Labour MPs and peers, academics and representatives from the charity sector is in the middle of a review of the Labour party's voluntary sector policy. Kaye Wiggins, Third Sector Magazine, selects the key extracts from a summary of its meetings to date.

What Labour did well

"Labour's creation of the Office of the Third Sector was viewed as an important step forward in the relationship between the sector and the state, aided by the rapid development of the OTS's role while Ed Miliband was minister."

"The work on the Social Wholesale Investment Bank and social bonds were singled out as welcome developments and areas to build on in the future."

"Policy strengths included dropping the Gift Aid threshold to zero as well as the reform of charity law, particularly through the Charities Act 2006."

Where Labour went wrong

"It was widely agreed that the originally successful partnership between the Labour government and the sector had fallen back towards the end of the period in government and new input into the sector had slowed down."

"It was felt that the sector did not know what Labour was trying to achieve beyond the general aim of increasing investment."

"Contributors highlighted how at times the investment in the development of an infrastructure lacked clarity and, as such, the full potential of such investment was not achieved."

What the government has got right

"The big society agenda has put the voluntary and community agenda at the centre of a very public political debate and this should be welcomed."

"The pathfinder mutuals programme was positively received by many participants and is seen to build on aspects developed under Labour."

"The big society was felt to offer scope for local solutions and provide more responsive and better quality services."

What the government has got wrong

"Some participants saw the big society brand as tainted and damaging to the sector as a result of poor communication and inextricable links to the government's programme of cuts."

"The point was made that the government had got rid of much of the infrastructure supply to the voluntary sector due to its perceived links with the previous Labour government. This has created a lack of expertise and long-term experience within the sector."

"The big society bank may not provide finance that is useful and accessible to the wide range of organisations that need it."

A major issue identified was the role of the Transition Fund and, in particular, what it was a transition towards. There was a widely acknowledged lack of clarity regarding the government's long-term plan."

Threats to the sector

"An increase in projects failing is generally expected as a result of the reduction in funding and the current economic climate. Concerns were raised that the increase in unsuccessful projects would prompt the introduction of competition in new areas and result in privatisation."

"There is a significant challenge facing volunteering, with the danger that it will increasingly be presented as an alternative to paid work or even as a substitute for it."

"Concerns were raised that smaller organisations are not consulted to the same extent as larger bodies and, as such, in a period of rapid change, their voice and opinions could be lost."

"It is important that the function of campaigning doesn't become the realm of the heavyweights in the charity sector. Local voluntary and community organisations must not lose the capacity to lobby for change, and job losses and funding cuts could disproportionately limit their ability to do so."

"The community and voluntary sector is too reliant on government capital. This could lead to uncertainty and leave the sector exposed to changes in government policy, which, over time, could have a detrimental impact on long-term planning."

What Labour should do next

"To be an effective opposition, Labour must point out the risks involved beyond only criticising the big society brand."

"The opposition must decide what form and shape they want public services to take."

A limited tax base must be accepted in the present climate and we must think about how to achieve higher outcomes at a lower cost. Some contributors suggested it is important to innovate in services and it may be the case that the private sector can facilitate this."

"A point was made that where there is diversity of provision, the state's role is to scrutinise that provision, fund advocacy when there are problems for users and to regulate."

"A potential area for government involvement was identified in the provision of guidance and clarification of procurement laws for the voluntary and community sector."

"The issue of public accountability has not been addressed satisfactorily. One way of addressing it is through 'multi-stakeholder mutualisation', or the need for any community or voluntary organisation to be a balanced one (ie representing in equal parts the workers, funders and consumers, and rejecting either top-down control or entirely bottom-up models)."

Full story here: Third Sector Magazine