Smoke and mirrors won't alleviate the concerns of many voluntary organisations losing support grant

Below is a statement from the opposition Labour Group about the widespread concern amongst many voluntary organisations such as RCRE about the loss of support grant. The ConDems have accused the Labour Group of favouring organisations that support Labour and of scaremongering. This is a disgrace to accuse organisations like RCRE of being Labour biased. RCRE have been around for over 40 years providing a valuable service to many people from ethnic minority backgrounds and now find their funding slashed by £90.000.

Commissioning Budgets and Core Funding Grants to the Voluntary Sector 2011-12

Reading’s Con-Dem coalition has made much of its claim that it is “planning to increase the total amount of funding” it gives to Reading’s voluntary sector in the coming financial year.

Labour councillors say this spin is very misleading because:
• £ 7,039,519 is the headline figure the Con-Dem coalition claims is heading the way of the voluntary sector this year, against a claimed £4m+ last year.

This looks impressive, but in fact:
• Total funding in terms of grants and contracts taken together is budgeted at: £6,728,370 for 2011-12 and was 6,818,281 in 2010-11 in fact just under £90,000 (£89,911) less than Labour gave the voluntary sector last year.

This is because the Con-Dem Coalition have included in their headline figure of £7m
• a sum of £220,000 earmarked for the project to refurbish and reopen the Central Club in London St. This is neither new money nor more money - it is money set aside in the Council’s budget by the Labour Group two years ago.
• a sum of £100,000 within the Council’s capital budget which may be used by the voluntary sector for projects such as repair, or refurbishment of their premises,. However this is money which has to be bid for, thus it may or may not be spent.

More importantly the Con-Dem coalition is holding back more than half a million pounds (£531.431) which goes into a pot of money for later bidding processes at some point in 2011-12. This again is money which may or may not end up with voluntary groups.

This means that the next financial year will see many voluntary and community groups facing cuts or possible closure and their clients facing the withdrawal of services on which they vitally rely.

This is the true face of the Big Society. The voluntary sector is being asked to paper over the huge gaps in the services people need created by government cuts. At the same time groups such as Reading Community Welfare Rights Unit, which gives advice and support to those in difficulty, faces a very uncertain future. Our young people needing help with their education or to find a job, the elderly and disabled who need care or just to get out of the house may well find that help is no longer available.