DSC Asks: Angela Smith MP responds

Angela is the Labour MP for Basildon and the Minister for the Third Sector

DSC’s questions appear in bold below; Angela’s answers appear in normal text

If Labour wins the election, and you remain Third Sector Minister (or its equivalent), who would your first three meetings be with?

I’d be delighted to remain Third Sector Minister – this was the job that I wanted to do and the Prime Minister made it clear that by making it a senior ministerial job he was reflecting his view of the importance of the sector to Government.

Obviously all ministers have to have meetings but I’m not really a meetings person, and find I can get more information and better progress in talking to people when I’m out and about on visits and in more informal settings.  But I would quickly hold a series of roundtable meetings with our 40 strategic partners and other key organisations on early actions to implement our manifesto policies.  

What do you propose to do about the following:
•    Irrecoverable VAT
•    Payroll Giving
•    Gift Aid
•    The Compact

The first three of these are matters for the Treasury and we would continue discussions to ensure that the voice of the sector is heard.  Obviously different organisations are affected in different ways and this has to be factored in.

• Irrecoverable VAT – Third sector providers of care, welfare and childcare services do not charge VAT but neither are they able to reclaim VAT on their costs.  The Government’s ‘Guidance for Funders’ makes it clear that relevant overhead costs should be allowed on bids, and this applies equally to irrecoverable VAT costs.  

• Payroll Giving – The amount donated has increased from £27 million in 1997 to £104 million today and over three quarter of a million users so obviously we will do all we can to work with the fundraising organisations to champion and promote this way of making donations.  When I presented the awards this year one issue that was raised with me was Government support for the portability of payroll giving schemes and I will certainly want to look at how this can be achieved.

• Gift Aid – Although specific proposals on Gift Aid are again matters for the Treasury we are proud of the success of Gift Aid and the difference it can make.  It’s worth nearly £950m a year to charities and the transitional rate that was introduced to protect charities when tax was lowered is worth £300m.  I’ve had meetings with the Treasury to discuss ways in which to redirect the higher rate relief to charities and the Treasury is now examining the research it has undertaken.  

• The Compact – With the Refreshed Compact now in place the focus has to be on implementation and monitoring.  I’m very keen to use and celebrate the best practice that already exists in Government to drive forward to making that best practice the norm.  I want to make this, not an adversarial process, but one in which the sector and the Government both recognise the benefits from working in partnership using the Compact.

How would the majority of voluntary sector organisations that receive no grant or contract income benefit from another Labour government?

The vast majority of organisations, three quarters of charities, receive no grant or contract income from the Government – but that doesn’t mean that we can’t help or support them.  Part of that can be financial, for example through the Grassroots Grants Programme which makes awards from £250 to £5000 to some of our smaller community groups. 

But for many of these groups it is not just about money – they need volunteers, public support and access to government so their voice can be heard on the issues that concern them.

The Government has invested around £45 million a year over the last two years in volunteering in different projects through the Cabinet Office alone.  We’ve also invested in support for the infrastructure which supports volunteering, have cut red tape for charities (and we want to do more on this), are investing £70m in Community Builders to support community empowerment and through the support we will continue to give to encouraging giving.  

How would life under the next Labour government be different for campaigning charities?

Before I was elected to Parliament I worked as a campaigner in the Third Sector.  For twelve years I and my colleagues at the League Against Cruel Sports ran some great campaigns – but we never won the prize of getting hunting banned because we didn’t have a government that wanted to listen to us. 

I feel strongly that organisations that have a view should express that view, and whether they receive Government funding or not, they shouldn’t be prevented from doing so.  A charity can provide a service that helps a few people, and in doing so they can use that expertise to generate debate, change attitudes and lobby government for a change in policy that if successful could help many more.

Obviously all charities have to act within Charity law but it must be recognised that campaigning can change lives.

The are numerous examples where campaigning by a charity or other third sector organisation has been of benefit to Government in ensuring that all aspects of any proposed policy are examined and any problems or potential problems are brought to Government attention.  This is a valuable and essential role for the Third Sector.

If Labour is re-elected, how would it support and improve relationships between local government and local charities and voluntary organisations?

There are two areas I would pick out that have the potential to make a real difference. Firstly, the new refreshed compact sets the framework for local compacts. 

Through our funding of Compact Voice and their networks of community champions we could use the same model of implementation, monitoring and promoting good practice as we will in Government. 

Also, the ongoing work on Total Place brings a new approach with greater potential for the Third Sector.  Where the pilots have best engaged the Third Sector the benefits have been clear.  Also, the Local Government Performance framework contains two indicators, the environment for a thriving Third Sector and involvement in volunteering that all authorities will be measured against for their Comprehensive Area Assessment.

Finally, not in answer to a question, but a personal comment: the recession has been difficult for the sector and I was delighted that the Government was able to get a package of support together ‘Real Help for Communities’ of up to £42m that, whilst it couldn’t solve all problems it was able to make a real difference to many organisations. 

The staff, trustees and committee members and volunteers of so many organisations are to be congratulated for the work they have done in providing help, support and services for those that have relied on their help.


What do YOU think?  Email your thoughts to Angela Smith at flackk@parliament.uk

Click here to read Nick Hurd’s responses to DSC’s question

Click here to read Jenny Willott’s responses to DSC’s questions