Nicola Carroll 18 June 2008

Three’s a crowd?

Nicola Carroll investigates progress – or otherwise – in relations between local government and the third sector
‘A three-legged stool with different length legs,’ is how one community group leader describes the dynamics between central government, councils and the third sector.
The community and voluntary sector (CVS) features prominently in political rhetoric – particularly in light of the Local Government and Public Involvement in Health Act, the community empowerment White Paper, and the Office of the Third Sector’s push for commissioning of public services from not-for-profit bodies.
But organisations representing the sector argue that, although progress has been made, there is still a gap between the rhetoric and what is actually happening. They say funding cuts and contradictory messages from central government often hamper relations between councils and the CVS at local level.
The Community Sector Coalition, which brings third sector bodies together nationally, wrote to communities secretary, Hazel Blears, raising concerns that 40% of Community Empowerment Networks face funding cuts, the Strategic Partners Programme has been cancelled, and the new Working Neighbourhoods Fund offers scant scope for community development.
‘The general drive towards community empowerment is positive. But the cancellation of programmes gives worrying messages to the sector,’ says the coalition’s chief executive, Matthew Scott. The relationship between central government, councils and CVS can sometimes be, ‘a three-way conversation at crossed purposes,’ he says.
Third sector leaders have now been told that £6m set aside for the scrapped Strategic Partners Programme is likely to be re-packaged in the shape of resources for programmes to complement community empowerment legislation.
Kevin Curley, chief executive of the National Council for Voluntary and Community Action (NCVA), argues that, while such a resource for community empowerment would be welcome, it focuses on one aspect of the sector’s work.
CVS requires support for its strategic relationship with local government – especially in terms of involvement in determining wider priorities under local area agreements (LAAs) and local strategic partnerships.     
A recent survey by NCVA highlighted ambivalence among CVS leaders about relationships with councils. Just above half – 55% – were generally satisfied with the level of third sector involvement in their LAA. And just under half – 49% – were being awarded funding to enable this.
But the survey raised a question mark over longer-term funding. While 90% of CVS leaders believe their local authority has a grants budget to support local third sector organisations, just 61% expected this to be sustained beyond the current financial year. 
And only 48% of respondents found their Local Compact a valuable tool for sustaining or improving relationships with local public bodies. Mr Curley thinks this is because such compacts lack statutory backing.
It is 10 years since central government’s compact on relations with the voluntary sector was drawn up, and the first council to launch its own compact was Dorset CC in 1999.
Progress since has been slow because central government did not set a deadline for Local Compacts or provide additional resources, according to Paul Barasi, local compact voice officer at the National Council for Voluntary Organisations (NCVO).
‘We have now turned a corner. There are only 11 councils which do not have a compact. Virtually nobody thinks relations are getting worse – although councils generally think they have a better relationship with the third sector than the third sector thinks councils have with them.
CVS could help deliver what’s on ministers’ agenda, but the Government is not pushing it enough and is not making the link between Local Compacts and LAAs,’ Barasi told The MJ.
NCVO is trying to strengthen good practice. Barasai can cite numerous case studies and gives the example of Lambeth LBC, where a community group campaigned for Brockwell Lido to be refurbished, and the project has been a huge success.
Gloucestershire CC has 500 local groups plugged into its LAA. Merton LBC has set a ‘very outcome-driven template’ for CVS relations that is being picked up by Rochdale MBC.
Polarisation between best and worst-performing councils on CVS relations seems to be occurring.
Barasi argues that councils making headway on Local Compacts are reflecting that progress in performance scores. He names Harrow LBC, which has an excellent CPA rating, as one authority which has made an impressive business case for third sector involvement, and treated local CVS players as genuine partners.
Jess Crocker, compact advocate at NCVO, who handles cases where relationships between local authorities and voluntary bodies go awry, cites the three main reasons behind disputes as – ‘devolution, shifts from grants to commissioning, and less money being available in local government generally’.
She adds: ‘There are areas where relations are really improving. Linking compacts to LAAs is key. But central government guidance is not clear, and there is a lot of buck-passing.’
Says Sally Cook, third sector policy consultant at the LGA: ‘The three-way relationship got stuck in a dynamic of the third sector going to the Government to get councils to do things.
‘The central-local concordat and new performance framework are shifting that dynamic, and there is greater requirement for direct dialogue between councils and their local CVS.’
In her view, it is encouraging that around one-third of local authorities are likely to choose National Indicator 7, which calls for ‘an environment for a thriving third sector’, as one of their 35 Comprehensive Area Assessment indicators.
the Office of the Third Sector is spearheading a national survey on the environment for a thriving third sector which will measure performance at local authority district level in England. A spokesperson says that although the Strategic Partners Programme has been stopped, a programme will be delivered that is ‘a better fit’, and £7m has been awarded to the Commission for the Compact.
A CLG spokesperson adds: ‘We are freeing £5bn local government funding over the next three years so councils can choose to channel new money into measures involving the third sector and empowerment as they see fit.’
When asked about a new funding stream to help implement the community empowerment White Paper initiatives, the CLG said it would be inappropriate to speculate at this stage.
But a spokesperson says: ‘We strongly believe the third sector has an important part to play in the support and empowerment of local communities, and the White Paper will play part of this wider drive across government to achieve this.’
Third sector representatives remain unsure about its future, but are clear that in order to be fully-fledged partners in a tripartite relationship with central and local government, they need adequate powers or resources. Otherwise, that three-legged stool may just topple.
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