Government’s pledge to third sector worth £515m
The Government has pledged £515m of investment for the third sector in a combined Comprehensive Spending Review and Pre-Budget Report, confirming the funding plans originally outlined in the Third Sector Review in July 2007.
Alistair Darling’s first major policy announcement as Chancellor pledged the investment for the period 2008–2011, and will promote the sector’s role in building strong communities and delivering public services.
It also confirmed key announcements made in the new strategy for building the Government's relationship with the third sector including a greater focus on enabling the sector's role in campaigning and representation. This also includes investment in innovation consultation approaches and better use of the Compact agreement with government to protect the right of organisations to campaign.
Investments will include:
- a £50m local endowment match-fund programme, which will enable local independent foundations to develop community endowments to provide sustainability in future grant-making;
- at least £10m of new investment in community anchor organisations and community asset and enterprise development, in addition to the £30m Community Assets Funding announced in the 2006 Pre Budget Report;
- an £80m small grants programme for community action and voice (as announced in the 2007 Budget);
- £117m of new resources available for youth volunteering, through the organisation “v”;
- over £85m for Capacitybuilders, to develop the sector's infrastructure; and
- up to £65m for the Futurebuilders fund, bringing the total projected value of all loans, grants and loan guarantees under the management of the fund to £215m by 2011
The Pre-Budget Report and Comprehensive Spending Review also confirmed Government's commitment to three-year funding, making it the Office of the Third Sector's responsibility to "drive progress" in this area.