The Autumn Budget took place yesterday (30 October). The National Council for Voluntary Organisations (NCVO) has shared their response on how the annoucements could impact the Voluntary, Community and Social Enterprise (VCSE) sector.
Public service investment
The government’s plan to increase investment in local government, SEND provision and housing are all positive moves that will preventatively support many of the communities charities serve. It will also reduce the need for voluntary organisations to step in and provide essential, sometimes crisis, services to those in need. However, we know that the impact of these investments won’t be immediate, and charities will have to continue to plug the gaps until then. Investment in local government is a positive step and has the potential to strengthen support for communities and enhance services.
Extension to the UK Shared Prosperity Fund
The UK Shared Prosperity Fund will be extended for a further year – providing a transitional arrangement for local authorities to invest in local growth.
Contracts must be uplifted to cover the true cost of delivery
A quarter (26%) of charity income already comes from government grants and contracts, often at a local level. But we know from talking to our members that the value of these contracts is not covering the true cost of delivery.
Many charities are already having to cover the shortfall in government contracts using fundraising or cash reserves, and in some cases are handing back or turning down contracts as a result. As part of local government investment, we’re clear that we must see existing contracts uplifted and any new contracts must include commitments to annual increases, to ensure they cover what it actually costs to deliver them. This will ensure the government can realise its aim to improve public services.
Report sets clear recommendations for supporting York’s VCSE sector
Earlier this year we asked you, our members and the wider VCSE sector to help us identify what support York’s VCSE sector needs and the challenges we face around funding and finance.
In response to the findings we have collated a list of recommendations specifically to commissioners about how the commissioning process can better support the sector. We have outlined how we will continue to support you, our members and the wider VCSE sector in York, and linked to resources and direct support.
The National Council for Voluntary Organisations (NCVO) has shared their thoughts on how the announcements will impact the Voluntary, Community and Social Enterprise (VCSE) sector.
‘We’ve been clear through our recent campaigning that charities are in a dire situation, juggling a triple threat of rising demand, escalating costs and falling funding. We know that the announced increase in employer National Insurance Contributions and National Living Wage will place another distracting strain on charities, at a time when they are already struggling.
Ahead of today’s budget, in partnership with WCVA, SCVO and NICVA, we wrote to the Chancellor to outline our position on potential increases.
The voluntary sector employs almost one million people, so the impact of this increase will be felt heavily across charities of all sizes. While it is still too early to say exactly what the fallout will be, we are being very clear on the realities. We know charities will have less flexibility to bear these increasing costs, and many will have to make difficult choices in the coming months as a result.
Following on from the budget, we have shared our thoughts and initial reactions to what we heard.’