Agenda item

The Scrutiny & Overview Committee requested information regarding the voluntary, community & faith sector support as part of its budget scrutiny considerations. This information is set out in the accompanying report for the Committee to note as part of the wider Budget Scrutiny process.

The Committee considered a report set out on pages 17 to 26 of the agenda which gave an overview of the support provided to the voluntary, community and faith sector from the Council. This report was included on the agenda as part of the Committee’s Budget Scrutiny workstream to allow the Committee to seek reassurance on the Council’s relationship with the voluntary sector following confirmation that the Community Fund would expire on 31 March 2022.

Cabinet Members for Community & Culture, Councillor Andy Stranack, Corporate Director for Resources, Jane West, Assistant Chief Executive, Elaine Jackson, Corporate Director for Adult Social Care & Health, Annette McPartland, Director of Policies, Programmes & Performance, Gavin Handford and the Chief Executive of Croydon Voluntary Action, Steve Phaure attended the meeting for this item.

During the introduction to the report from the Cabinet Member for Communities & Culture it was noted that due to the significant financial challenges facing the Council, it was not possible to continue the Community Fund once it expired in March 2023. Even so, the Council would continue to be the largest supporter of the community & voluntary sector (CVS) in the borough.

Those organisations directly affected by the discontinuation of the Community Fund had been informed in November and this had been followed up with a series of one to one meetings, the outcomes from which had helped to inform the new ways of working.  These ideas included increasing the number of contracts available for local providers to bid for, the Council partnering with CVS providers on government contracts, venue hire, supporting CVS organisation to access health funding and looking at where CVS organisations could provide Council services. Thanks was given to all the groups for their positive ideas and challenge and to the thousands of volunteers in the borough.

Steve Phaure, the Chief Executive from Croydon Voluntary Action had been invited to the meeting to provide insight on behalf of the CVS, during which it was noted that there was widespread buy-in to resetting the sector’s relationship with the Council. There was a good basis upon which to build in the borough and the consultation had resulted in a positive list of actions. However, there was a need to firm up these proposals with a robust plan for delivery as there was an immediate crisis from the reduction in funding available that needed a short term response.

Issues for the sector included the need to find a way of supporting preventative work in the borough and being clear on what funds were being raised for which would accompany a fundraising strategy. Fundraising should have a focus on both internal commissioning and attracting funding from outside of the borough. Social value commissioning should also be revisited to find a mechanism by which it can work. Above all, it was important to ensure that the support provided for vulnerable residents remained at the heart of the conversation going forward.

Following the introduction and the feedback from Croydon Voluntary Action, the Committee had the opportunity to asked questions on the information provided. The first question related to the end of the Community Fund and whether the new arrangements would be in place to support organisations from the end of March. CVA confirmed that they did not expect the Council to have its new ways of working to be in place within that timeframe, but it was hoped that an action plan would be in place to move forward at pace.

This was followed up with a question about what the plan was for the immediate future. As previously noted, it was confirmed that all 31 groups impacted by the end of the Community Fund had been invited to attend a one to one meeting to discuss the way forward. Two groups had indicated that they were unlikely to survive without Community Fund, so the Council was helping them to access different funding sources. Going forward, it would be important to hold regular meetings with community groups and to ensure that any new funding routes were directed towards the local CVS.

In response to a request for practical examples of support that had been given, it was highlighted that the Council had assisted the New Addington Pathfinders group with identifying funding available from the Great London Authority (GLA) and written a letter of support for their bid. 

There was a question about whether the local meaningful proportion of the Community Infrastructure Levy (CIL) could be used to provide ongoing grant funding for local organisations. This was raised as the current funding provided through CIL was ending. It was agreed that this would be followed up outside of the meeting to clarify.

As it had been previously noted that one target under the new ways of working was to increase the level of grant funding locally, it was questioned whether there would be an increase in the level of local grant funding over the next twelve months. It was advised that it would not be possible to provide a definitive target at the current time as it was reliant on contractual and procurement changes being introduced. There was a commitment to delivering change in this area, but it was likely take place over several year and include a focus on social value.

It was questioned whether there had been feedback sought from local groups about the potential impact from the discontinuation of rent subsidies and rate relief. It was confirmed that it would be difficult for some groups, but it was about being creative on sources of funding. The Council had consulted with all affected groups on a one to one basis and was looking at the different types of support it could provide including options such as community asset transfers and shared spaces. Given the financial challenges facing the Council it was important to look at options such as maximising the use of council assets.

It was highlighted that should the Council stop funding services; it may lead to unforeseen costs in the future and as such it was questioned whether there had been any analysis of the potential impact. It was advised that it had become clear that if the Council stopped commissioning advice services, they could be difficult to restart, so alternative funding for these services was being explored. Groups that provided care and support services were also being looked at and reassurance was given that any shortfall in provision was being met.

At the conclusion of this item the Chair thanked those present for their attendance at the meeting and their engagement with the questions of the Committee.

Actions arising from the meeting

Following the discussion of the Voluntary, Community & Faith Sector Support item at the meeting, the Committee agreed the following actions that would be followed up after the meeting.

1.    The Committee requests that feedback is provided on the key outcomes from the Mayor’s meeting with representatives from the voluntary, community and faith sector on Friday, 3 February 2023.

2.    That clarification is provided on the Council’s ability to allocate part of the local meaningful proportion of the Community Infrastructure Levy for grant funding of local voluntary, community and faith organisations.

3.    It was agreed that the Council relationship with the voluntary, community and sector would be scheduled for review by the Committee to evaluate the success of the Council’s new approach to its relationship with the sector. 

Conclusions

Following its discussion of the Voluntary, Community & Faith Sector support report, the Scrutiny & Overview Committee reached the following conclusions:

1. The Committee welcomed confirmation from both the Council and Croydon Voluntary Action of their commitment to building a deeper relationship betweenthe Council and the important voluntary, community and faith sector in our borough.

2.    There were serious concerns flagged about the risk that the new ways of working with the voluntary, community and faith sector would be in place in time to support some of the organisations with the transition away from the funding provided by the Community Fund when it ended in March 2023.  Given the risk that some community groups may not be able to adapt to the new arrangements in time, the need to implement tangible support plans needed to be a priority and treated with urgency to prevent the risk to services and activities being lost.

3.    The Committee welcomed the commitment to looking at creative ways of providing support to the sector, particularly reviewing the use of social value in contract arrangements.