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NAVCA welcomes the Fabian Society report Mutual Action, Common Purpose: Empowering the Third Sector. This report was written by David Blunkett at the request of the Prime Minister and will inform the labour party manifesto for the next election. NAVCA particularly welcomes the chapter on commissioning, contracts and the compact which stresses the importance of grants as part of the funding mix and recognises that there are some unintended consequences of commissioning.

In particular Blunkett says: “Funding via grants therefore has a critical role to play. The added value offered by those within the Third Sector needs to be recognised with local grants supporting local groups - who in turn are able to provide services tailored to and determined by those on the ground without limitation.”

Blunkett also says that when the prime contractor model is used there needs to be a justification for doing so. He identifies that this model can result in money being spent on the contracting process rather than on the delivery of services. He also recognises that this process can stifle responsiveness, flexibility and involvement of service users and therefore in fact runs counter to government policy.

In response to this report Kevin Curley, Chief Executive of NAVCA said: “It is pleasing to see that a former minister who has had responsibility for the third sector continues to take such a strong interest in the sector and its role. Moreover his recognition of the importance of grants supports NAVCA’s position that grants for third sector organisations have a critical role to play in delivering services to local communities. Blunkett reinforces the argument that whereas contracts dictate to a local organisation precisely what funders want doing, grants enable the funder to support the aspirations of a local group that really understands what is needed. I would urge NAVCA members to take Blunkett’s comments to their local authorities and other public bodies as these comments strengthen the case for retention of grants.”

Launch

The report was launched at NCVO’s political conference. At the launch Kevin Curley asked Blunkett “What can be done about the drift away from grant aid for local organisations and the trend for ever bigger services contracts which exclude small specialist organisations and therefore damage local communities.” In his reply Blunkett said that “in the context of welfare to work programmes it is lunacy to cut out small specialist organisations”. He thought that the formation of consortia of small organisations was a good way forward and that big “warehousing contracts” are undesirable. Furthermore, Blunkett said “Frequently prime contractors make the gain and subcontractors take the pain.” He asserted that we must find a way to avoid cutting out specialist local organisations or we will not be able to deliver the outcomes local people need.

Consultation

The report is designed as a consultation document. NAVCA will be responding to the document and encourages its members to contribute to the debate.

Podcast

Shortly before the publication of this report, Kevin Curley interviewed David Blunkett. This interview is available as a podcast and covers many of the issues highlighted in the report and the role of groups in the current economic downturn.

Kevin Curley, Chief Executive of NAVCA, said,
“I am delighted that Southall Black Sisters have won this case. They are an organisation that has won national recognition for the work they do and should never have been put in this situation by Ealing Council.

“Southall Black Sisters’ victory is good news for everyone who believes, as NAVCA does, that it is right to fund BME organisations providing specialist services as this is the best way to tackle inequality and help disadvantaged groups.

“NAVCA argues from experience that, as well as being the best way to provide vital services, ‘single group funding’ reduces segregation as it gives BME organisations the confident organisational base that enables them to look outwards and contribute more to civil society.

“I hope that other local authorities will take note of this case and think twice before doing anything that may undermine the principle of single group funding”.