Funding cuts in the third sector

Grassroots Grants gives way to new Communities First fund

A £130m grants programme will not be renewed next year as government plans begin to take shape. The government's new Communities First fund, which will provide start-up funding for community groups, will replace the Grassroots Grants scheme when it runs out in April next year.

The Office for Civil Society has confirmed that the £130m Grassroots Grants fund, which was set up by the Labour government to support small charities and community groups, will not be renewed.

Cabinet secretary Francis Maude announced the Communities First fund earlier this month. He said it would foster the creation of new community groups in deprived areas, but did not say how much it would be worth.

An Office for Civil Society spokesman said details of Communities First would be announced in December.

Charities minister Nick Hurd has indicated that government funding for Capacitybuilders and the volunteering charity v is also under review.

The OCS spokesman said all of the department's spending was potentially under review because of the need to reduce the national deficit.

What will happen to programmes run by the Office for Civil Society?

The 2007 Third Sector Review pledged £500m in 2008-11. After June's emergency budget, the figure for the next spending round is likely to be smaller.

Decisions already made

Futurebuilders
Closed after all of its funds, totalling about £155m, were allocated to help 375 organisations bid for public service delivery contracts. Civil society minister Nick Hurd has said income from the repayment of its loans would be redirected to fund community organisers and neighbourhood groups. "We think that the future of loan finance delivery is through the Big Society Bank, and we want to encourage the traditional banking industry to meet the sector's debt needs," he said.

Grassroots Grants
£80m for small grants to community groups and £50m to match other funding of local foundations. Will not be renewed from 2011. No funding yet allocated to new Communities First fund for local start-up bodies.

Definitely up for review

V
Received £38.1m in government funding in 2009/10 and is due to receive £39m in 2010/11. Government plans to develop a national citizen service to offer volunteering opportunities to school leavers.

Capacitybuilders
Has a budget of about £90m in the 2008-11 spending round; came under criticism from the National Audit Office.

Also being considered

The Compact
£6m in all was allocated to support the agreement between the public and voluntary sectors.

Strategic Partners
In 2008/09, £12.2m went to partners such as umbrella body Navca and CSV.

Community Assets
£30m fund for 2008-11 to transfer local council buildings to the voluntary sector.

Third Sector Magazine, 22 June 2010