Meeting documents
Executive (I)
Friday, 20th December, 2013
| REPORT TO: | 10 |
| DECISION NUMBER: | PH/133/2013 |
| EARLIEST DATE FOR DECISION: | 20th December 2013 |
GRANTS TO THE VOLUNTARY SECTOR | |
| Matter for Consideration: As part of the budget consultation process it has been proposed that grants to the voluntary sector, currently worth approximately £400,000, are reduced by 50% in the year 2014/15 and cease completely in the year 2015/2016. This proposal is based on the premise that opportunities for the voluntary sector are more appropriately developed through commissioned work rather than grants. Currently the Council spends in the region of £4.5 million with the sector on commissions. In order to allow for full and proper consultation with the sector on this option to achieve savings it is proposed that those organisations who are reliant on their current grant in order to continue to offer services to the public are given the value of their current grant for the next three months to facilitate meaningful consultation during that period. | |
| Information: The Council proposed in its budget which was released for consultation in November 2013 that the current system of providing grants to the voluntary sector should cease over a period of two years. The current grant spend in the sector is in the region of £400,000 each year. This proposal was made on the basis that over time there has been a shift away from grant giving to commissioning and in fact the Council now spends approximately £4.5 million with the voluntary sector through commissioning work and services from them. The Council has been working with the Council for Voluntary Services and ‘One Blackpool’ who it commissions to provide support to the voluntary sector on undertaking full consultation on this proposal. Following the Council’s initial consultation, the Council has had feedback from a number of organisations that in order to properly participate in the consultation exercise they would need to make decisions now about staffing and premises that could be inappropriate depending on the outcome of the consultation. This proposal would allow for meaningful consultation and consideration of options and mean that any decisions made are implemented in a considered manner. | |
| Does the information submitted include any exempt information? | NO |
| Legal Considerations: The Council is obliged to consult properly on its budget proposals. | |
| Personnel Considerations: The Council will also undertake a complete Equality Analysis of the wider budget proposal to remove this funding. This transitional arrangement forms part of this Equality Analysis to mitigate the known impact on organisation that provide services that directly impact on Equality groups. The Council has made clear to Council for Voluntary Servcies/ One Blackpool, that the consultations and recommendations they make need to be affected within the context of the Council’s legal duty to promote equal opportunity, tackle discrimination and promote community cohesion. | |
| Financial Considerations: The costs of providing this level of support have been included in the proposal to manage the transition process in the 2014/2015 budget proposals. | |
| Performance Management Considerations: None | |
| Risk Management Considerations: This proposal allows for adequate and appropriate consultation and therefore reduces the risks to the sector and the Council. | |
| Relevant Officer: Carmel McKeogh, Deputy Chief Executive | |
| Relevant Cabinet Member: Councillor S. Blackburn | |
| Consultation Undertaken: Consultation with the sector has commenced and this proposal is to enable it to continue in a fair manner. | |
| Background Papers: None | |
| Is this a key decision? | NO |
| Is the decision required in less than 5 days? | NO |
| Recommendations: That the Deputy Chief Executive- Human Resources, Communication and Engagement be authorised to undertake a financial review early in the new year of the organisations currently receiving grant funding of over £25,000 from the Council to ascertain if three months funding at their current rate should be allocated to them to enable meaningful consultation to take place. To agree that organisations in receipt of small grants shall be excluded from consideration as these grants are not core funding and are annual only. To note that youth fund grant monies will not be considered as this funding was clearly available on a non recurrent basis for the year 2013/14. To agree that organisations whose levels of reserves are substantial shall also be excluded from receiving an interim grant as they are able to participate in the consultation process, without financial support. That organisations whose current grant funding is allocated to projects that do not incur staffing or building costs may also be excluded from receiving the interim grant as consultation may still continue with them without affecting their viability. That subject to 2.1 to 2.5 the Deputy Chief Executive- Human Resources, Communication and Engagement be authorised to allocate 3 months funding based on their current grant levels to those organisations identified. | |
| Reasons for Recommendations: To enable meaningful consultation to continue with those affected by the proposal to reduce and then cease grant funding in the budget proposals. | |
| Is the recommendation contrary to a plan or strategy adopted or approved by the Council? | NO |
| Is the recommendation in accordance with the Council’s approved Budget? | YES |
| Other alternative options to be considered: Current grants cease on March 31st 2014 and one option would be to take no action. This would leave some organisations vulnerable as they would need to give notice to staff and landlords on the assumption that they do not benefit from the transition arrangements. This would have to be done in early January on the assumption that services would cease on the 1st April. This would be before any decisions have been made by the Council about funding and therefore risks the cessation of services that could have been maintained. Another option would be to award an interim grant to all recipients of current grants. However this would take up a considerable amount of the transition fund that is proposed to be set aside and leave little capacity for future support in 2014/15. It is clear that some organisations are in receipt of small grants for one off projects that will have been delivered by the year end and other organisations have sufficient resources to sustain them during the consultation process and so awarding funds to all recipients would not be an effective use of transition monies. | |
| Policy, Overview, and Scrutiny Committee Chairman (where appropriate) Date Informed: N/A Date Approved: N/A | |
| DECLARATION(S) OF INTEREST (if applicable) None | |
| Decision: The Leader of the Council agreed the recommendations as outlined above namely: 1. That the Deputy Chief Executive- Human Resources, Communication and Engagement be authorised to undertake a financial review early in the new year of the organisations currently receiving grant funding of over £25,000 from the Council to ascertain if three months funding at their current rate should be allocated to them to enable meaningful consultation to take place. 2. To agree that organisations in receipt of small grants shall be excluded from consideration as these grants are not core funding and are annual only. 3. To note that youth fund grant monies will not be considered as this funding was clearly available on a non recurrent basis for the year 2013/14. 4. To agree that organisations whose levels of reserves are substantial shall also be excluded from receiving an interim grant as they are able to participate in the consultation process, without financial support. 5. That organisations whose current grant funding is allocated to projects that do not incur staffing or building costs may also be excluded from receiving the interim grant as consultation may still continue with them without affecting their viability. 6. That subject to 1 to 5 the Deputy Chief Executive- Human Resources, Communication and Engagement be authorised to allocate 3 months funding based on their current grant levels to those organisations identified. | |
| Date: | 20th December 2013 |
| Reason for Decision: To enable meaningful consultation to continue with those affected by the proposal to reduce and then cease grant funding in the budget proposals. | |
Date of Publication: | 20th December 2013 |
[ ]
