London Voluntary Sector Faces Massive Cuts - It’s not too late to lobby your local council leader.

On 17 July, a proposal tabled at a London Councils meeting (formerly the Association of London Government - ALG) grants committee meeting suggested a 33% cut in the £28m annually distributed to voluntary groups across London. Some of those who supported the cut have stated that councils should be free to spend money as they wish, as a point of principle. Some councillors have raised concerns that local voters have complained about funding given to unpopular causes, particularly BME groups.

Voluntary sector organisations such as the NCVO have described the move as a breach of the compact, and organisations which operate across boroughs (such as women’s refuges) have expressed particularly strong concerns.

London Councils has been keen to encourage the view that this cut will not inevitably mean reduced funding for the voluntary sector, as it will just give the boroughs greater control over spending, but because the money will no longer be ring fenced this rosy view seems unrealistic.

One member who has supported the reduction was Michael Rye, the Conservative leader of Enfield council. Mr Rye was quoted in the Guardian as saying that "Any reduction in the grant budget will, of course, mean a saving for each London borough, which they should be able to choose to apply to their voluntary sector or other priorities, such as reducing council taxes."

London Councils is a group made up of the 33 London boroughs, the Metropolitan police and the London fire and emergency planning authority. Leaders of each council meet once a month to decide, and vote, on policies. The 17 July meeting was the first since overall control passed to the Conservatives.

Although local borough councils have their own voluntary sector funding arrangements, the London Councils grant scheme makes it easier to fund services which cross borough boundaries. This also means that pan London organisations can make considerable cost efficiency savings.

One such organisation is London Play, which seeks to increase access to play and physical activities across the capital. In a recent review by London Councils, they were rated as ‘excellent’ and their services cost less than nine pence per child per year. They are one of many organisations now fighting for survival, and encouraging people to write to their MPs and councillors prior to the final votes on October 30 and November 14.

The grants budget has not risen in line with inflation over recent years and requests for funding have regularly exceeded the budget. The funding priorities set by the committee have tended to result in greater sums being allocated to inner London boroughs. It can be argued that these are in greater need than the outer boroughs, but a perception of unfairness in the distribution of funds, as well as the real-terms fall in funding led to calls for the current review process.

One decision already taken as part of the wider review was that funds would be distributed through a process of commissioning services, rather than the traditional process whereby organisations apply for grants.

Last week, London’s mayor Ken Livingstone wrote to Ruth Kelly, requesting the transfer of the grants scheme to the office of the Mayor of London, in order to safeguard vital services. This seems to be an unlikely outcome, and is a deeply ironic request. The grants function was once under the remit of the Greater London Council (GLC), before it’s abolition in 1986. The unpopularity of grants given to certain organisations at that time is widely believed to have made it easier for the Government to abolish the GLC.

Final decisions are being made on October 30 and November 14. It’s not too late to write to your local councillors, and particularly the council leaders.

Justine Fernandes