85/02
10 September 2002
CROSS CUTTING REVIEW CHALLENGES GOVERNMENT AND THE VOLUNTARY SECTOR
A blueprint to transform the way Government and the voluntary and community sector work together was launched today by Chief Secretary to the Treasury Paul Boateng, and Home Secretary David Blunkett. The blueprint is backed by £93m Government funding, as part of the £188m identified in the 2002 Spending Review for the Active Community Unit.
The report, the result of the Treasury-led cross cutting review of the role of the voluntary and community sector in service delivery, sets out 42 recommendations to overcome the barriers facing voluntary and community organisations (VCOs) in delivering high-quality public services and facilitate successful, long-term partnerships between the Government and the VCS.
Paul Boateng said:
?This review presents a challenging agenda for change for both Government and the voluntary sector backed by substantial resources and a detailed implementation plan.
?Together with our Futurebuilders investment fund of £125 million1 to help the sector in its public service work, this report will reshape the relationship between government and the sector. I am confident that this heralds a new beginning and an improved way of working together.
David Blunkett said:
?All Government departments are involved in the implementation of the Review, but the Home Office's Active Community Unit is at the heart of making change happen.
?I want to develop the capacity of the sector by nothing short of a change in culture, a new relationship between Government and voluntary and community organisations.
?We want a partnership of equals. A two-way relationship where Government gives appropriate support to the sector, and the sector uses its experience and expert knowledge to deliver responsive, flexible services to their communities.
?The hallmark of a thriving community is a healthy voluntary and community sector - a sector that provides services in tune with people's needs. We want voluntary and community organisations to extend the opportunities for people to take part in decisions that shape their community and their lives.?
Key outcomes from the review include:
- Ensuring that the cost of contracts for services reflect the full cost of delivery, including any relevant part of the overhead cost;
- Moving to a more stable funding relationship and ensuring that the sector is equipped to work effectively in partnership with government;
- Involving the VCS in the planning as well as delivery of services;
- Developing capacity in the sector to achieve equality within partnerships.
The report also charts a challenging course for implementing the existing Compact and Codes of Good Practice between government and the sector.
Home Office minister Lord Filkin, with special responsibility for the voluntary and community sector, said:
?Voluntary and community groups have specialist skills and a fresh independent and flexible approach that works. We want to support them and help them improve their delivery of services and make them responsive to the needs of communities.
?Government can do that by helping to develop the infrastructure of the voluntary and community services. That means ensuring the sector has the skills, knowledge, structures and resources to realise their full potential.
?Also crucial is the proper implementation of the Compact - which gives guidance to improve relations between the Government and the voluntary and community sector. There is widespread support for the principles of the Compact and we have the momentum now to take this forward.?
Stuart Etherington, Chief Executive of the National Council of Voluntary Organisations, said:
?We welcome this report which sets out a solid framework for a new accord between government and the voluntary and community sector, an accord for which the NCVO have long argued. Particularly welcome is the Treasury's announcement of the 'Futurebuilders' fund and it will be crucial that the recommendations are developed in partnership and implemented in full, particularly at a local level.?
Lord Filkin and Treasury minister John Healey will report twice a year on progress of the implementation to the Cabinet level committee of Domestic Affairs (Active Communities and Families).
Notes to editors:
1. The Active Community Unit is the lead unit to take forward the Government's voluntary and community policies. It was re-launched by the Home Secretary in the May 2002 and Helen Edwards, former chief executive of the crime reduction charity Nacro, took up the new post of director of the unit in January 2002.
2. The Spending Review earmarked £125m for the creation of Futurebuilders - a one-off investment fund to help VCOs in their public service work. The aims of the fund are to overcome obstacles to effective service delivery, to modernise the sector for the long term, and to increase the scope and scale of VCS service delivery. The fund will be designed and administered in close co-operation with the sector itself.
3. The Compact on relations between Government and the voluntary and community sector was published in 1998. The Compact fully supports the independence of the sector, including its ability to campaign, comment on Government policy and to challenge that policy while working closely together. The Compact is underpinned by detailed codes of good practice in five key areas: funding; policy appraisal and consultation; volunteering; the Black and minority ethnic voluntary sector; and community groups (currently out for consultation).
For press inquiries please contact:
Shazia Ejaz in the Treasury press office on 0207 270 5238
Fiona Devine in the Home Office press office on 0207 273 2804