The unique skills
and community benefits of the third sector must not be overlooked
by councils looking to improve local public services, Communities
Secretary John Denham said today.
Many third sector organisations bid to deliver community based
local services but Ministers are concerned that too many lack the
technical skills or are too small scale to win contracts for
council run projects.
Speaking at a meeting of council leaders and key third sector
organisations, Mr Denham said: "In the quest for leaner
more efficient services we still need to find ways for councils to
take advantage of the positive social outcomes the third sector provides."
The Government also launched a new community enterprise strategic
framework to help more local groups set up successful local social
enterprises today.
The framework, announced by Barbara Follett at the Funding the
Future conference, sets out how Government will help put community
enterprises onto a stronger footing with more support, skills
training and advice such as how to set up consortiums or
franchises to increase their competitive clout when bidding for
council contracts.
The public sector is facing a period of constrained expenditure
and with philanthropic donations slowing it is vital that
community enterprises can raise their own finances. The strategic
framework reinforces the commitment to explore new innovative ways
to independently raise funds.
Community shares could allow local people to raise funds to
maintain or buy a stake in important community services like the
village shop or local pub to ensure its survival. A football
supporters club could form a co-operative to take over their team,
giving the supporters a chance to purchase community shares and so
have a say in its future.
As part of Putting the Frontline First the Government proposed
piloting Social Impact Bonds as a new way of funding the third
sector to provide services. This has the potential to radically
change how government funds the third sector, by rewarding social
investors for work which reduces future social costs. CLG is
actively testing the feasibility of a pilot in Leeds.
John Denham said:
"We know services are best when they are delivered
locally because they really reach into the community and it is
often third sector that is closest to that community. I have a
real concern that the third sector is not getting the opportunity
to play full its part. They must have an equal chance to show what
extra they can do differently.
"Councils and companies are short changing their
communities socially if they don't look beyond the price
tag to deliver the current services at the lowest possible cost
and consider the many additional benefits third sector providers
can bring such as jobs for the workless that can save even more
money in the long run.
"Today's roundtable discussion has shown
that councils, who are shifting their focus to the needs of the
user – the Total Place approach - know this and are finding their
aims for the community could be met in a more joined up way; with
the third sector having a real role to play in delivering
services, positive social outcome and efficiencies if the barriers
can be removed, which is why we have published a new framework."
Mr Denham praised councils already using the third sector to
deliver services; for example Turning Point in Somerset has helped
substance misuse offenders by reducing travel time by being based
in four community sites across the county.
Nerys Anthony from Turning Point said:
"By providing services and solutions that are community
based and locally driven, the people who need help the most are
able to access it in a way that meets their whole needs. Strong,
vibrant, decisive local government and a commitment to
personalisation will make this localism agenda a positive reality
for individuals and communities alike."
Anna Turley from the New Local Government Network added:
"We welcome this push from John Denham that recognises
the value of a broad range of providers of local services. The
third sector can often take a more cross-cutting approach to
delivering local services, and can be well integrated with the
communities they serve. It is vital that local authorities take a
strategic, outcome-focused approach to commissioning which
recognizes the role that other local partners play."
CLG is also setting up a website with practical information on
starting and developing community enterprises, and training
advisors who will be available to provide expert advice.
Notes to Editors
1. Along with John Denham, the roundtable held at CLG in London
included representatives from Suffolk County Council,
Herefordshire County Council, Birmingham City Council, Sutton
Borough Council and third sector organisations Turning Point,
Salvation Army, Social Enterprise Coalition, ACEVO, Derby
Contracts Advice Network, Greenwich Leisure Ltd, New Local
Government Network and Community Matters, along with
representatives from WM Regional Improvement and Efficiency
Partnership and IDeA.
2. The social impact bond pilot could see Leeds City Council and
NHS Leeds work with Social Finance Ltd to develop a bond. If the
results of the current feasibility study are satisfactory, the
pilot is likely to focus on the savings made to health and social
care sectors by adapting private housing to prevent falls or
cold-related illnesses. The bond would provide funding, growth
capital and support to pay for the new intervention service. After
a specified time the public bodies involved would pay investors
back from savings made from this early intervention. The bond
agreement would determine the outcomes to be achieved and the
value of the cost savings they would generate, and the return to
be paid. The pilot would be the first time this social impact bond
model has been tested in a local community setting.
3. Full details of the Community Enterprise Strategic Framework
can be found at: www.communities.gov.uk/publications/communities/communityenterpriseframework.
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