DSC Asks: Nick Hurd MP responds

Nick is the Conservative MP for Ruislip-Northwood, and the party’s Shadow Minister for Charities, Social Enterprise and Volunteering

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

If the Conservatives win the election, and you become Third Sector Minister (or its equivalent), who would your first three meetings be with?

Since the publication of our Green Paper, Voluntary Action in the 21st Century, in 2008, we have conducted a long consultation process to really engage with the issues that matter to charities; voluntary groups and social enterprises. As a result we want to focus on three fundamental issues:

1. Making it easier to run a charity; voluntary organisation or social enterprise
2. Getting more resources into the sector ( time and money); and
3. Making it easier for the sector to do business with Government.

All with the aim of unlocking the potential of the sector to improve more lives. We are very aware of the delivery challenge, so my first three meetings would be with:

• The Director General of the OTS – to discuss the implementation of our manifesto
• The teams within the OTS – to discuss their role in making it happen
• My diary secretary to ensure that my time is focused on making it happen.

What do you propose to do about the following:

• Irrecoverable VAT – I recognise that the longstanding VAT issue is full of anomalies; frustrations and  complexities. We want to get more resources into the sector but the dire state of the public finances mean that the scope for short term manoeuvre on this issue is limited. However that is not an excuse for inaction. I want to work with the sector and our Treasury team to make the intellectual case for change, once the public finances permit. My priority will be to identify what we can do ourselves without needing to agree with Europe.

• Payroll Giving – We have said that we want to encourage higher levels of giving. An important part of that programme will be to encourage more systematic giving, and the workplace is where we should start. So we attach high importance to encouraging stronger leadership on this issue from our business leaders.

• Gift Aid – Again the debate on restructuring Gift Aid has gone on too long. Our priority in the short term is to identify practical ways in which we can reduce the administrative burden on charities; which falls disproportionately on smaller organisations. In that way we can reduce the cash and opportunity cost associated with this important tool. I am in discussions with our Treasury team on the best mechanism to improve the long efficiency of Gift Aid, which only four in ten people use.

• The Compact – The Compact is a useful tool which must not become another bureaucratic exercise. However it can be ignored, as the Minister herself did in failing to consult on a reallocation of committed grants. Our priority is to get greater clarity about who is responsible for what when it comes to championing the Compact. For it to have some teeth, the Commission must be given more authority.

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

We must never forget that most of the sector has no interest in doing business with the State. Indeed the principal value of the sector to society lies in its robust independence. That is why we attach such importance to our first two priorities: making it easier to run these organisations and getting more resources into the sector.

Reform of Gift Aid; increasing levels of philanthropy; social investment and volunteering; thinning the thicket of regulation and hidden cost that holds these organisations back: reasserting the independence of the BIG Lottery Fund and focusing it 100% on funding social organisations – all on our To Do list.

How would life under a Conservative government be different for campaigning charities?

We recognise the value of the advocacy role as long as it supports the charitable purpose. We propose no change to current regulations.

How will Conservative policy support and improve relationships between local government and local charities and voluntary organisations?

This is an important question in an age of localism and severe pressure on local government finances. Strengthening the authority of the Compact Commission is one element of the answer.

Greater transparency of public expenditure is another – so that we can have more information on public grants and contracts. Reform of the commissioning and procurement process to reduce absurd bureaucracy and increase trust is fundamental.

Finally I think there is a great deal more that central government and the sector can do together to engage local authority leaders and Local Strategic Partnerships with the argument that a healthy voluntary sector will make their lives easier.

What do YOU think?  Email your thoughts to Nick Hurd at HURDN@parliament.uk

Click here to read Angela Smith’s responses to DSC’s questions

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