Ministers set up third sector group

3 Mar 10
A Cabinet committee to encourage increased involvement of third sector bodies in public service provision has been established, Public Finance has been told.
By David Williams

4 March 2010

A Cabinet committee to encourage increased involvement of third sector bodies in public service provision has been established, Public Finance has been told.

In an interview with PF, third sector minister Angela Smith said the committee, known as ‘Misc 37’ and chaired by Chief Secretary to the Treasury Liam Byrne, met for the first time this year.

Smith said the government was looking to train commissioners to be more aware of the strengths and needs of third sector bodies, and to find ways for charities to share services or bid collectively for contracts.

‘I think the third sector’s influence has been steadily increasing,’ she added. ‘The recession has been very difficult and a huge challenge for the sector, but it has also been quite an opportunity. If anyone had any doubts about the sector’s ability to deliver, they don’t now.

‘The issue is now about scaling up some of that – and bringing that something extra.’

The minister emphasised that third sector bodies could add value to communities by providing more collaborative services tailored to the needs of the individual. But she acknowledged that charities should not be viewed as a ‘cheap option’ for providing public services.

‘What I wouldn’t want to do is use the third sector as a way to cut costs… I wouldn’t look to the third sector as a cheap option, I would look to it to work in partnership with the government and local authorities to get better services for people,’ she said.

‘For me it’s the output that’s the most important thing, and you can’t expect charities or voluntary organisations to give services on the cheap if you want high-quality services.’

The minister said the £75m of government funding earmarked for a Social Investment Wholesale Bank in last year’s Pre-Budget Report would help charities become more competitive by enabling them to raise working capital more easily.

But Ralph Michell, head of policy at the Association of Chief Executives of Voluntary Organisations, said the funding committed to the social investment bank was far short of the £250m that charities estimate would be necessary to make it viable.

CIPFA and the Improvement and Development Agency are offering free training for commissioning and finance people in the public sector to build understanding of the third sector. The regional events, which start on March 16, can be booked online at
www.cipfa.org.uk/training

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