T3S briefing about New Government Policy

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  • Director of T3SC Asked to set the context But preaching to converted? Bit of a quiz Size of organisation: stand up – stat partners sit down income levels – up to £50k; up to £100k; up to £250k; up to £.5m; up to £1m; £1m+ Hands up if you are here as a trustee..............paid member of staff
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • Size and shape of the sector From NCVO Civil Society Alamanac 2009 – leading source for reliable data Some figures only available for 2006 So, sector is large – big business
  • T3S briefing about New Government Policy

    1. 1. Briefing: New government policy
    2. 2. Content <ul><li>Budget headlines </li></ul><ul><li>Public sector cuts </li></ul><ul><li>Red tape / targets </li></ul><ul><li>Big Society </li></ul><ul><li>Regional / sub regional structures </li></ul><ul><li>Worklessness / welfare to work </li></ul><ul><li>Other announcements affecting the sector </li></ul>
    3. 3. Budget headlines <ul><li>80% of deficit to come from spending reductions / 20% from tax increases </li></ul><ul><li>Spending reductions: </li></ul><ul><ul><li>Reduction in child benefits for higher earners; </li></ul></ul><ul><ul><li>Public sector pay held (£21k+) </li></ul></ul><ul><ul><li>Child Benefit frozen </li></ul></ul><ul><ul><li>Housing benefit reduced by 10% </li></ul></ul><ul><ul><li>Excluding the state pension and pension credit, tax credits and public service pensions will rise in line with the Consumer Price Index, rather than the, generally higher, Retail Price Index </li></ul></ul><ul><li>Tax increases: </li></ul><ul><ul><li>Changes to tax credit system </li></ul></ul><ul><ul><li>Capital Gains tax rising for higher rate earners </li></ul></ul><ul><ul><li>A levy on banks will be introduced </li></ul></ul><ul><ul><li>VAT to rise to 20% </li></ul></ul><ul><ul><ul><li>Impact on voluntary and community organisations? </li></ul></ul></ul>
    4. 4. Budget headlines <ul><li>Concessions (from 2011): </li></ul><ul><ul><li>Personal income tax allowances increased </li></ul></ul><ul><ul><li>The basic state pension will be linked to earnings from April 2011, with the pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater. </li></ul></ul><ul><ul><li>The threshold at which employers start to pay National Insurance will rise by the rate of inflation plus £21 per week. </li></ul></ul><ul><ul><li>Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%. </li></ul></ul><ul><ul><li>The small companies' tax rate will be cut to 20%. </li></ul></ul>
    5. 5. Public sector cuts <ul><li>Savings this year of £6.1 billion </li></ul><ul><li>Local Authorities ‘share’ of savings £1.3 billion </li></ul><ul><ul><li>21% of overall savings </li></ul></ul><ul><li>Less ‘ring fencing’ of grants from central Government to l.a. </li></ul>
    6. 6. Public sector cuts <ul><li>Reductions in Area Based Grant (in Tameside): </li></ul><ul><ul><li>£1.6m education grant </li></ul></ul><ul><ul><li>£0.15m Supporting People Administration </li></ul></ul><ul><ul><li>£0.446m Working Neighbourhood Fund </li></ul></ul><ul><ul><li>£57k Prevent </li></ul></ul><ul><ul><li>£33k Community Cohesion </li></ul></ul><ul><li>Whilst the £2.1 m may not seem large against the overall budget (0.8%), its impact could be </li></ul><ul><ul><li>4 of the 5 schemes above are significant sources of funding for the sector </li></ul></ul>
    7. 7. Red tape / targets <ul><li>Comprehensive Area Assessment (CAA) abolished with immediate effect </li></ul><ul><li>General move towards a reduction in targets </li></ul><ul><li>National Indicator Set remains largely untouched at the moment </li></ul><ul><li>other announcements regarding many other targets (for example A & E waiting times; lead times to receive treatment under the NHS etc) </li></ul>
    8. 8. Big Society <ul><li>The creation and expansion of mutuals, co-operatives, charities and social enterprises </li></ul><ul><ul><li>and enabling these groups to have much greater involvement in the running of public services </li></ul></ul><ul><li>Public sector workers given a new right to form employee-owned co-operatives and bid to take over the services they deliver </li></ul><ul><li>Training of a new generation of community organisers and support the creation of neighbourhood groups across the UK, especially in the most deprived areas </li></ul><ul><li>National Citizen Service for young people </li></ul>
    9. 9. Big Society <ul><li>A range of measures to encourage volunteering and involvement in social action </li></ul><ul><ul><li>including launching a national ‘Big Society Day’ </li></ul></ul><ul><li>Promotion of ‘localism ’ </li></ul><ul><ul><li>the devolution of power and greater financial autonomy to local government, including a full review of local government finance. </li></ul></ul><ul><li>Establishing a Big Society Bank </li></ul><ul><ul><li>to provide new finance for neighbourhood groups, charities, social enterprises and other nongovernmental bodies. </li></ul></ul>
    10. 10. Regional / sub regional structures <ul><li>Regional Development Agencies will be replaced by ‘Local Enterprise Partnerships’. </li></ul>
    11. 11. Worklessness / welfare to work <ul><li>Future Jobs Fund, offering 6 month placements to young people unemployed for 6+ months, will cease. </li></ul><ul><li>Current provision for worklessness support will be suspended (Flexible New Deal etc) </li></ul><ul><li>There will be a greater focus getting people off of Incapacity Benefit, and the government have announced that the programme of assessments of people will be accelerated. </li></ul>
    12. 12. Other announcements <ul><li>The Office of the Third Sector has been replaced by the Office for Civil Society </li></ul><ul><li>Futurebuilders (which provided loans to voluntary organisations and social enterprises to enable them to grow and deliver public services) has been scrapped. </li></ul><ul><ul><li>As current loans are repaid the monies will be used for a ‘Communities First’ fund, aimed at small, community organisations and neighbourhood groups. </li></ul></ul><ul><li>The Grassroots Grants programme, currently managed by the Community Foundations, will not continue beyond March 2011. </li></ul><ul><ul><li>Nominally this will be replaced by the ‘Communities First’ fund, although it is not clear how this will be managed. </li></ul></ul>
    13. 13. Other announcements <ul><li>Under review: </li></ul><ul><ul><li>Capacitybuilders (running the ChangeUp programme to improve the quality of local infrastructure organisatons </li></ul></ul><ul><ul><li>‘ V’ (the Youth Volunteering body) </li></ul></ul><ul><li>Remodelling of the Vetting and Barring Scheme (VBS) back to &quot;proportionate, commonsense levels&quot;. </li></ul><ul><ul><li>As a result, the ISA-registration stage of the scheme has been stopped and will not launch on 26 July 2010 as was planned. </li></ul></ul>
    14. 14. Future <ul><li>Comprehensive spending review in Autumn </li></ul><ul><ul><li>‘ The Treasury has told most government departments to prepare &quot;illustrative plans&quot; to cut spending by 40% - as well as the expected 25% - within the month’. (BBC) </li></ul></ul><ul><ul><li>Will set out spending plans for next three years </li></ul></ul>

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