Issue - meetings

To receive a report by the Head of Environmental and Community Health Services detailing the outcome of a review of the Voluntary Sector Organisations.

Requested officers to continue negotiations with representatives of the affected organisations and other statutory partners in an attempt to facilitate organisational change and to investigate savings potential of alternative accommodation arrangements.

With the assistance of a report by the Head of Environmental & Community Health Services (a copy of which is appended in the Minute Book) the Cabinet were acquainted with the findings of a review of the Voluntary Sector Organisations that hold commissioning agreements with the Council. The report had been considered by the Overview and Scrutiny Panel (Social Well-Being) whose comments were relayed to the Cabinet.

Executive Councillors were advised that officers have met with representatives of the affected organisations to discuss the potential impact of a reduction in grant funding on service users, their ability to attract external funding and the organisations’ capacity to use their financial reserves to offset any budget reductions.

In considering budget reductions, Members concurred with the Panel that a 50 % reduction in funding could place some of the organisations in a vulnerable position and may result in an increase in demand for services provided by the Council and other public sector service providers, the cost of which could exceed any grant reductions.

Particular reference was drawn to accommodation costs for some of the organisations, Members concurred with the panel that alternative accommodation options should be investigated with a view to achieving efficiencies.

Having acknowledged the excellent work of each of the organisations and in stressing the Council’s commitment to supporting them, the Cabinet

RESOLVED

(a)  that the contents of the report now submitted be noted;

(b)  that officers be requested to continue negotiations with appropriate organisations and other statutory partners in an attempt to facilitate organisational change; and

(c)  that savings potential of alternative accommodation arrangements be investigated.

To receive a report by the Head of Environmental and Community Health Services detailing the outcome of a review of the Voluntary Sector Organisations.

20 Minutes.

(Councillor J D Ablewhite, Executive Leader, Councillor T D Sanderson, Executive Councillor for Healthy and Active Communities, and Councillors P J Downes and T W Clough were in attendance for this item).

The Panel received a report by the Head of Environmental and Community Health Services (a copy of which is appended in the Minute Book) detailing the outcome of a review of the Voluntary Sector Organisations that held commissioning agreements with the Council.

In introducing the report, the Healthy Communities Manager reminded the Panel of the background to the review, which had been prompted by Members at the November 2010 meeting of full Council. It was reported that a series of review meetings had been held with the organisations concerned to assess the potential impact of a reduction in grant funding upon service users, their ability to attract external funding and their willingness to utilise their financial reserves to offset any grant reductions proposed by the Council.

The Panel questioned whether the social impact of grant reductions to voluntary organisations could be assessed given that they had a number of functions beyond those specified within their service level agreements that affected the wider social environment. The review findings indicated that some of the voluntary organisations could be placed in a vulnerable situation if the Council decided to reduce its grants to them by 50%. Members commented that there would be greater pressures placed on the Council and other public service providers and voluntary organisations in the District if grants were reduced. Owing to the fact that the organisations made use of volunteer workers, the cost to the Council of meeting this demand would exceed any grant reductions.

The Panel noted that the level of funding provided to the organisations had changed over time. It was suggested that future funding should be based on the level of need for the services offered by them. It was further suggested that the Council should take into account whether services were offered on a District-wide basis. Members were informed that Huntingdon Shopmobility and St Barnabas Community Learning Centre were they only organisations that provided services to a specific sector of the District’s community. Having been acquainted with the outcome of the Equality Impact Assessment undertaken as part of the review, the Panel also expressed concern at the likely effect of any grant changes on those in isolated rural areas.

Members discussed the fact that financial support was provided to the voluntary organisations by other funders such as Cambridgeshire County Council, the Primary Care Trust, the Police and Town and Parish Councils. Although they acknowledged the difficulties faced by some organisations when other funders withdrew their contributions, it was noted that the District Council had, in the past, made up the resulting shortfall in funding.

The Panel has commented that, given the varying levels of funding currently received by the organisations and the contributions that the grants make overall towards their operating costs, a uniform rate of reduction across all the organisations would not  ...  view the full minutes text for item 45