Emergency Budget 2010 – What It Means For The Community Sector

Sector umbrella bodies respond to the Emergency Budget of 2010.

The announcement of George Osborne’s Emergency Budget has led to concern among leading sector umbrella bodies.

The budget includes plans to:

• Increase VAT from 17.5 to 20 per cent which is likely to lead to a rise in demand for charities’ services as access to welfare benefits are tightened and unemployment rises.

• Cut 25% from Government departments across the board, with the exception of health and aid spending.

• Cut the welfare budget by £11 billion.

• Substantial charity donors HMRC intends to replace the current rules and will be consulting informally on this through the summer. Full legislation will be published in the autumn.

• Review the current National Lottery taxation arrangements.

Neil Cleeveley, director of policy and communications at NAVCA, said the government needed to provide more information on their ideas for the Big Society:

“This is further evidence of just how tough public spending cuts are going to be. That’s why we need to know the government’s plans for the big society.

“We need to know that local charities and community groups will get the support they need to help communities through these hard times.”

ACEVO chief executive Stephen Bubb agreed that any plans for the Big Society must be as a result of consultation with the sector and showed concern about the rise in VAT:

“The scale of the challenge facing charities as a result of this Budget is enormous. The spending cuts outlined today will impact on frontline services. The vulnerable will likely receive less support, charities will be asked to do more, and will have to do so at a time that their cost base is rising due to the VAT rise.

“The Government has made clear that as it rolls back the state it wants a Big Society to flourish in response. If this is to happen, it is crucial that now the state works with us in genuine partnership, that we are fully engaged in the Spending Review and that it is not a PR process as some Conservatives have suggested.”

The rise in VAT was a concern also for the Charity Tax Group (CTG) who warned that the increase could cost charities £150 million a year.

Helen Donoghue of the CTG said:

“We fully understand the Government’s urgent need to tackle the deficit through spending cuts and tax increases.

“But it has also emphasised the need for fairness and protection for the least well off and, as our research has shown, the impact of this VAT increase will have a detrimental and disproportionate effect on the charity sector.”

The social enterprise sector said the budget lacked detail on the Big Society and did not offer anything directly to social enterprises.

Investment executive at Local Partnerships, Dan Gregory, said:

“If the big society is to mean anything in practice, and not just as a cover story for cuts, then the big spending departments and local authorities will have to take it seriously.”

“A handful of speeches and initiatives emerging from the Cabinet Office, communities or treasury departments will not make the big society, but we haven’t seen any evidence of either in this budget.”

“What is clear, however, is that the days of government throwing another fish over the side to social enterprises a couple of times a year have gone.”

To view the full budget document click here (opens in new window).

HM Treasury, 25/06/2010

Happy Birthday Funding Central!

Dynamic and comprehensive funding website, Funding Central (opens in new window) celebrates its first birthday with a brand-new homepage that can be personalised to suit individual needs.

 Over the last year Funding Central has helped thousands of organisations to secure funding; learn about tendering protocols, bid for government contracts and improve the quality of their funding applications for grants, contracts or other financial opportunities.

 And now, when fund-seekers register with the site, they can able to create their own “dashboard” – a personalised screen listing funds, funding searches and collaborative partners most relevant to your organisation. This will allow users also create to-do lists, set up task reminders and add events and news to their customised homepage. Suggestions of upcoming funding opportunities that are appropriate for users’ preferences will also be made (based on information provided by users in their profile).

 Graham Collins, NCVO’s Sustainable Funding Programme Manager said:

“Since its launch Funding Central has proved invaluable for organisations looking for up-to-date funding opportunities as well as offering advice and support. Smaller organisations in particular, often with few resources of their own can now readily access the knowledge and tools to seek funding and build their capacity.”

 Chris Catterall from The Reader Organisation has first-hand experience of maximising the potential of this resource, securing a £135K contract from Wigan Council via the site:

“Funding Central is easy to use, brings together a vast amount of information in one place and provides you with a comprehensive range of services which can assist you completing funding applications…and it’s all free!“

 For further information watch this one-minute video (opens in new window) of Chris Catterall describing his favourite Funding Central features.

 Funding Central, 17/06/2010

Final Chance for Grants to Help Disabled People Volunteer

 Access to Volunteering, The Office for Civil Society’s pilot funding scheme to help disabled people volunteer is now in its last two rounds of grant-giving.

The remaining deadlines for applications are 28th June and 6th September 2010.

To date, 95 organisations have received grants of between £250 and £5,000 in the three test regions of Greater London, West Midlands and the North West. Current projects include helping disabled people to learn new skills, play a greater role in their communities and be active in the workplace.

Applications can be submitted online, by e-mail, phone or post. Particularly welcome are projects that help remove the attitudinal barriers that sometimes prevent disabled people from volunteering as well as applications from organisations new to volunteering.

Successful awardees are able to apply for repeat funding subject to providing suitable monitoring feedback and rollout potential, although the priority will be new applicants.

Please visit the website for more information or to view a list of successful bids (opens in new window).

Alternatively phone the helpline for more information on 03000 123 346.

Access to Volunteering Fund, 04/06/2010