The voluntary sector needs funding – it cannot deliver for free

By Rachel Reeves

The role of the third sector, or voluntary sector, has expanded hugely in the last decade. In part as a result of people volunteering – every day in Leeds West, where I am standing for parliament, people are putting something back in to their communities. But the expansion also reflects government recognition of the strengths and advantages of a sector which is not a government bureaucracy, but equally, is not a for-profit organisation.

One of the key strengths of the voluntary sector is that it is often more knowledgeable about local need, and more responsive to people’s individual circumstances. For example, one charity in West Leeds is working with young people at risk of becoming embroiled in the criminal justice system, making a huge difference – as I saw just last week when I attended their awards ceremony and met the seventeen year old now doing an apprenticeship at college. I believe that it is often right for government to encourage and pay for the voluntary sector to deliver local services.

As the general election approaches, the voluntary sector is asking how the respective parties view the future of the voluntary sector. This is particularly the case as the sector is feeling the pinch – being asked to do more for less, with demand for services rising while donations and grants fall.

David Cameron talks about setting the voluntary sector free to flourish. I am sure that we can find cross-party consensus support for that, but what does it mean in practice? Even the largest third sector organisation in Leeds West, with a turnover of £2million, receives the vast majority of its funding from central and local government grants. For smaller charities locally up to 100% of funding comes from government grants or through commissioned services. In Leeds West, average earnings are only £16,000 and most businesses are small businesses or sole traders. Although we have social enterprises – a community cafe, arts festival, a gardening business and new business supporting older people stay in their homes – the voluntary sector here does not have the capacity to be independent of government. he voluntary sector will not flourish without partnership with the government.

There is real fear, especially among smaller charities and ones in poorer areas, that Cameron’s policies mean charities fending for themselves, relying on philanthropy which might not be there, making it impossible to deliver the front line services the community needs.

The Conservative Party doesn’t seem to understand the day to day reality of how voluntary organisations are funded. They may be the third sector, but just like the public and private sectors, the voluntary sector has bills to pay, staff to employ and services to deliver. Partnership is therefore needed with the public sector, as well as individual and corporate philanthropy to be able to deliver services in the voluntary sector. The delivery of front line services by the third sector is one of the most effective means of public spending but it cannot be achieved for free.

The reality is that Labour has supported charities better than any previous government. By 2008 the income of all British charities was £48.4bn, more than double what it was in 1997. More recently the government announced a £42.5m package to help volunteers, charities and social enterprises through the difficult economic climate, as well as a further £16.7m for the sector announced in the 2009 Budget.

In his recent ‘Big Society’ speech, Cameron said the State had ‘squeezed out kindness’ from society. But, we give the second highest amount to charity in the world (0.73% of GDP), and around 30% of the population volunteer on a regular basis. In Leeds next year we have the year of the volunteer – and I’m working with one local business which is supporting two schools and a group working with elderly people, helping them live independent lives.

Given the facts, why are the Conservatives constantly doing down the contribution of the hard working, generous British people? We should be proud of our record. But it’s like the attacks on ‘Broken Britain’ – a slogan that ignores the fact that in most of our neighbourhoods people do look out for each other, young people are respectful and hard-working and the vast majority of parents do their very best for their children. But that doesn’t fit Cameron’s rhetoric.

The voluntary sector needs government to back up its commitment with money and concrete support. The voluntary sector has expanded as giving has increased and as the state has commissioned more services from the third sector – recognising their strengths in delivery. But, small charities, especially in deprived areas, will not flourish without a supportive state. Warm words don’t hide that reality.