The House of Commons had a bizarre discussion on 1st April about voluntary organisations, stimulated by an MP who had obviously been lobbied by his local children’s hospice:
Ben Chapman (Wirral, South) (Lab): What recent discussions he has had with third-sector organisations on the effects of the economic downturn on their funding streams; and if he will make a statement. [267960]
The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Liam Byrne): My Department is in constant contact with the sector to monitor the effects of the downturn. That is why we are determined to invest £500 million to support the sector over this comprehensive spending review period, and why we committed £42 million in extra targeted help in January.
Ben Chapman: Does the Minister accept that the double whammy of the economic recession will mean not just reduced charitable donations, but the possibility of reduced lottery moneys for charities as a result of reduced ticket sales? Does he accept that children’s hospices in particular and smaller charities in general will be particularly affected? Will he ensure that appropriate practical advice is given to both children’s hospices and smaller charities so that they can weather the period of the recession?
Mr. Byrne: I congratulate my hon. Friend on the work that he does representing and speaking up for hospices in his constituency. The third sector and charities such as those that he alludes to go into the downturn in stronger health than ever before, because we have doubled public income to the third sector from £5.5 billion to £11 billion. We are determined to do more. That is why we are spending £500 million over the comprehensive spending review period, and why we are determined to bring forward reviews and reform of Gift Aid. The tax system is now worth £4 billion to charities. Where there are opportunities for us to bring public services, charities and voluntary groups closer together, and to use that strategy to strengthen charities, we will do that. That is why the Department of Health has asked Futurebuilders to manage £100 million-worth of investment in social enterprises over the next couple of years.
They then went into a further discussion on whether ‘Third Sector’ was a useful term (Mr Byrne is the Minister for the Third Sector in the Office of the Third Sector). And of course he was determined to show how wonderfully they are doing for voluntary organisations.
However, these answers stretch credulity. Proportions of income from local pcts have not generally been getting better for hospices. What seems to be happening is that the government is pursuing what it wants to do for voluntary organisations, rather than supporting their judgement of what they need: grants as an instrument of government policy, not as a support for genuinely valuable work. And what use is Futurebuilders? It is a client organisation of the government which only pays grants to get voluntary organisations to do what the government wants the way it wants it, not what they are actually already doing, when the priority should be paying for what the government won’t pay properly for.
The Hansard record: http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm090401/debtext/90401-0001.htm#09040155000021