Bubb proposes third sector targets

1 Aug 11
Charities could set targets to ensure that third-sector involvement in public services increases, the chief executive of the Association of Chief Executives of Voluntary Organisations has told Public Finance
2 August 2011 | By Richard Johnstone

Charities could set targets to ensure that third-sector involvement in public services increases, the chief executive of the Association of Chief Executives of Voluntary Organisations has told Public Finance.

Stephen Bubb

Speaking to PF following publication of the Open public services white paper, Sir Stephen Bubb said that ‘although the government doesn’t like targets’, his organisation may produce its own.

These would outline the proportion of services to be provided by charities and voluntary groups.

Bubb produced a report on choice and competition, which fed into the ‘listening exercise’ consultation on the planned NHS reforms. The white paper took up some of these issues and confirmed ‘the direction of travel’, he said.

‘What I am saying is that we need to put more choice in our public services, and competition is there to drive more choice. It’s then a theme that you need to get diversity of providers.’

Individual government departments have to detail how they will meet the white paper’s intention to ensure that competition becomes ‘the default in our public services’, including any proposals for necessary legislation.

The deadline for their responses is November.

Bubb said that Acevo would ‘see how they [departments] rise to the challenge’ before looking at whether charities need to set any targets as guides for the development of open services. ‘It’s something that we need to look at, we might start setting targets. It would be quite a good guide – to see how [for example] the health board are doing with the choice mandate.’

According to the white paper, from April 2012 departments will publish regular progress reports setting out the steps that have been taken to open up public services. However, a Cabinet Office spokeswoman confirmed to PF that the government would not ‘set any hard and fast targets’.

Bubb also said that there were services where targets may not work, such as adult social care.

The Dilnot Commission on the future of care funding suggested that the government should set up a working group including local government, the financial services industry, the Financial Services Authority and interested third-sector organisations to consider how to develop a market in social care.

Bubb said that providers should look to ‘take more of a partnership approach, over a decade’.

He also told PF that the government’s aims for greater diversity of providers risk being held up by a lack of loans being made available by banks, despite the ‘vibrant’ third sector.

Bubb said: ‘I think we need to see reform of our banks so that they start lending to social enterprises. They have been wary of lending to any third-sector organisations, but they need to get a grip as these are very good organisations.’

He highlighted the potential for third-sector expansion in offender services, where the government announced last month that the management of eight prisons will be put out for tender.
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