29 June 2007
Voluntary sector organisations are still not on a level playing field with other public service providers, despite central government's efforts, auditors said last week.
A National Audit Office report examined whether Local Area Agreements were helping to promote better value for money in the way the government works with the third sector. It found that little use had been made of the opportunities LAAs offer, although ministers want a greater role for voluntary sector organisations in the provision of public services.
Joe Cavanagh, director of business development at the NAO, said: 'It is… disappointing. More needs to be done by the departments involved and by local authorities to understand the work of the third sector, and how it can be used to obtain better value for money in delivering services.'
The NAO report, published on June 22, urged the Department for Communities and Local Government to encourage councils to consider third sector organisations as potential delivery partners. The Treasury and Cabinet Office's Office of the Third Sector should also promote awareness and guidance and spread examples of good practice.
A Local Government Association spokeswoman told Public Finance the findings came as no surprise – councils were receiving mixed messages from central government about how much favouritism to show voluntary organisations when commissioning services.
Neil Cleeveley, director of information and policy at the National Association for Voluntary and Community Action, welcomed the report, saying: 'Navca wants to see LAAs work – the local third sector has a key role helping to bring about improved public services, especially in disadvantaged communities.'
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