22/06/2010 – Grassroots Grants gives way to new Communities First fund

The Office for Civil Society has confirmed that the £130m Grassroots Grants fund will not be renewed next year when it runs out in April. Instead a new Communities First Fund will provide start-up funding for community groups.

Cabinet secretary Francis Maude said that the new Communities First fund would foster the creation of new community groups in deprived areas, but he did not say how much it would be worth. Details of Communities First will be announced in December.

Charities minister Nick Hurd indicated that government funding for Capacitybuilders and the volunteering charity v is also under review. All of the department's spending is potentially under review because of the need to reduce the national deficit.

Plans for programmes run by the office for Civil Society are:

The 2007 Third Sector Review pledged £500m in 2008-11. After today's Budget, the figure for the next spending round is likely to be smaller.

Decisions already made:

Grassroots Grants
From 2011, £80m for small grants to community groups and £50m to match other funding of local foundations will not be renewed. No funding has yet been allocated to new Communities First fund for local start-up organisations.

Futurebuilders
This programme was closed after all of its funds, totalling about £155m, were allocated to help 375 organisations bid for public service delivery contracts. Civil society minister Nick Hurd said that the future of loan finance delivery is through the Big Society Bank. Income from the repayment of its loans will be redirected to fund community organisers and neighbourhood groups.

Up for review:

V
This programme received £38.1m in government funding in 2009/10 and is due to receive £39m in 2010/11. The Government also plans to develop a national citizen service to offer volunteering opportunities to school leavers.

Capacitybuilders
The budget of around £90m in the 2008-11 spending round was criticised by the National Audit Office.

Under consideration:

The Compact
A total of £6m was allocated to support the agreement between the public and voluntary sectors.

Strategic Partners
In 2008/09, £12.2m went to partners such as CVS and umbrella body Navca.

Community Assets
£30m fund for 2008-11 to transfer local council buildings to the voluntary sector.


Other lasa websites