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Third Sector Resilience: the Changing Policy Context

Pete AlcockUniversity of Birmingham

Labour Government Legacy

Hyperactive Mainstreaming

• Deakin Commission - need for improved relations (Concordat)• Alun Michael - Labour Party commitment to partnership• Office of Third Sector – 2006 (Cabinet Office)

Partnership workingFrom Vertical to Horizontal support

Strategic Support

Formalising relations - Compact

HM Treasury Cross Cutting Review 2002 - Capacity building

• Futurebuilders - £215m• ChangeUp (Capacitybuilders) – £150m• Communitybuilders - £70m• Social Enterprise Investment Fund - £100m

Sector Engagement

Strategic engagement

• Campbell Robb – OTS Director• OTS Strategic Partners• OTS Advisory Body

“Over the past five years we have seen a growing understanding of, and emphasis on working with, the voluntary sector across government. Partnership working has become the norm…” (Etherington, NCVO, 2002).

Growth in Income

Total income from statutory sources increased by 61% from 2000/01.

From Grants to ContractsShift from grants to contracts - contracts increased 157% from 2000/01 while grants fell by 32%.

Big Society

Core theme for Cameron and Conservative Party in run up to 2010 election – Building a Big Society

May 18 – Prime Minister (Cameron) and Deputy (Clegg)• ‘Big Society at the heart of public sector reform…’• Early policy statement – Building the Big Society, July 19 – Cameron• Liverpool Big Society speech – ‘my great passion’, ‘huge

culture change’

Big Society

Replacing the ‘third sector’ – Office of the Third Sector becomes Office for Civil Society

New policy programme • Making it easier to run voluntary organisations• Making it easier for organisations to work with the state• Getting more resources into the sectorFurther policy papers - Building a Stronger Civil Society,

Supporting a Stronger Civil Society, Better Together….

… But cuts in horizontal support for sector

Policy Retrenchment

2010 Spending Review – OCS budget slashed by around 60% • Futurebuilders and Changeup closed• Capacitybuilders and Compact Commission abolished • Strategic partners reduced (42 – 11) and funding cut• Compact ‘renewed’

Local authority support for sector also under threat from average of 25% cuts, and 51% of public funding comes from local authorities

Projected impact of spending cutsIf the planned spending cuts are passed on proportionately, the third sector will lose around £1.2 billion per year by 2015/16, and £3.3billion in total.

New Policy Environment

Continuity and Change

Opening up Public Services • Reform of commissioning• Right to Provide• Social Value Act• Competition and market pricing

But third sector ‘squeezed’ - Employment Programme and Payment-by-results…

New Policy Environment

Continuity and Change

Community engagement• Double Devolution• Community Vanguards• Community Organisers• National Citizens Service

But variations in community capacity and resources…

New Policy Environment

Continuity and Change

Social Investment• Big Society Capital• Social Impact Bonds• Mutualisation taskforce

But is there evidence of demand?