Government funding and public Services: recent trends PSDN Conference | March 2009 Karl Wilding | NCVO Research Contact: [email_address]

Overview Government funding for the delivery of public services remains a crucial issue. It relates to: The size and ecology of the sector Modes of funding Independence Funding practices What’s the evidence? We need a Julius report… And as we manage the recession, where next?

Government funding for the delivery of public services remains a crucial issue. It relates to:

The size and ecology of the sector

Modes of funding

Independence

Funding practices

What’s the evidence? We need a Julius report…

And as we manage the recession, where next?

1. The delivery of publicly funded services has shaped the size and ecology of the sector.

1. The delivery of publicly funded services has shaped the size and ecology of the sector.

Earned income

The growth of statutory funding The financial relationship with the State is driven by public service delivery contracts. Recession proof? 10% cut = £1.2 billion

The financial relationship with the State is driven by public service delivery contracts.

Recession proof?

10% cut = £1.2 billion

Contracts and grants by subsector

2. Many organisations deliver publicly funded services…but even more do not.

2. Many organisations deliver publicly funded services…but even more do not.

How dependent are individual organisations on statutory income?

3. Independence: some organisations are relatively dependent on statutory income.

3. Independence: some organisations are relatively dependent on statutory income.

Dependency on government funding

What is your main funding source?

4. There are a multitude of funding relationships and the delivery of services vary significantly

4. There are a multitude of funding relationships and the delivery of services vary significantly

Local statutory authorities are critical Local government still provides the majority of funding 10% cut = £570m Central government is playing an increasingly important role

Local government still provides the majority of funding

10% cut = £570m

Central government is playing an increasingly important role

Central government

Local government

5. Government funding practices and policies will shape how many organisations manage the impact of recession

5. Government funding practices and policies will shape how many organisations manage the impact of recession

The differential impact of recession 2 All things being equal , a reduction in funding will… Giving: religion/overseas/ environment Statutory: employment and training/advocacy Investments: foundations, research Other VCOs (eg foundations): development, overseas, infrastructure

All things being equal , a reduction in funding will…

Giving: religion/overseas/ environment

Statutory: employment and training/advocacy

Investments: foundations, research

Other VCOs (eg foundations): development, overseas, infrastructure

Funds matter Funds by subsector – as years of expenditure

Looking ahead: pointers for discussion Threats Public expenditure: fiscal tightening ahead Increased competition: From the private sector From government (insourcing) Increased demand

Threats

Public expenditure: fiscal tightening ahead

Increased competition:

From the private sector

From government (insourcing)

Increased demand

Looking ahead: pointers for discussion Opportunities Significant opportunities for further sector involvement in delivery Lesson learning No turning back? Increased demand

Opportunities

Significant opportunities for further sector involvement in delivery

Lesson learning

No turning back?

Increased demand