The Association of London Government has a new Grants Committee following the local council elections in May.
At their first meeting on July 12th, the following key proposals were made:

• A reduction of funding to the ALG grants budget by 33%
• A repatriation of 33% of the grants budget to local boroughs
• Changes to priorities for ALG funded services. The indication was made that groups that were providing ‘specialist’ and ‘exclusive’ services should NOT be prioritised. We are concerned that this will have a particular impact on equalities groups.

It was agreed that these proposals would be taken to an Executive Group of the Grants Committee, for recommendation to the ALG Leaders Committee.

This will be debated by the Grants Executive Committee on September 5th and a recommendation will be made by the Leaders Committee to London boroughs in November. They need the agreement of 22 boroughs by the end of January 2007 to confirm the decision.

MODA supports the campaign and calls upon all MODA members and voluntary sector networks in London whether funded by ALG or not to support the campaign. As an urgent measure:

1. If you are an ALG-funded group please fill in the ALG OPEN BIDDING REVIEW: QUESTIONNAIRE (click here) and email it back asap;
2. As the proposed reduction affects the whole voluntary sector in London and the vital services and activities they provide, please participate in the campaign and write to the councillors in your boroughs and members of the Grants committee in particular to express your concern about these proposed changes. For more information see below.
3. We will in the next few days liaise with other concerned second-tier and BME groups and will hopefully organise a meeting to inform and enable the participation of the affected organisations in the campaign.

What are the key messages that ALG funded organisations should be lobbying on?

1. Sub regional and plan-London services are both crucial and value for money

Sub regional and pan-London activities are strategic, and often specialist, services which are unlikely to be supported by individual boroughs. These services provide both value for money for local boroughs and vital services for local residents. Examples of such work include:

• Specialist legal advice services, such as the South West London Law Centre and Migrant Resource Centre.
• Specialist support services for equalities groups, which cannot be met by each borough, such as Carila Latin American Women’s Group.
• Pan-London services, such as the Rape and Sexual abuse Support Centre, which provides counselling for women across London.
• Support services for local organisations - e.g. London Play, and Age Concern London which work to support locally based organisations.
• Pan London and sub regional policy work e.g. London Civic Forum, which provides resources and project to support the understanding of public policy development and the function of regional Government.

It is unlikely that local boroughs could fund individual borough based project to cover these kinds of services. Funding in this way also offers value for money…For example, an organisation such as the Rape and Sexual Abuse Support Centre received a grant of £97,000 which works out at less than £33,000 per borough. For the local resident of that borough have access to a counselling service, which would not otherwise be available. It would not be possible for individual boroughs to effectively run such a service in a borough basis for £3000.

2. There has been no consideration of the impact of a cut to funding

Since the abolition of the GLC, grant levels have already fallen by £22 million in real terms (source ALG: Finding the Future: chapter 7 table 2 - www.alg.gov.uk /upload/public/attachments/390/Chapter7c.doc). This has caused difficulties for groups in maintaining and developing their services.
A further reduction by a third of the available funding would result in loss of staff or closures for many groups. This will affect groups providing pan London or sub regional services which may not be funded by local boroughs. The recommendations to cut the budget and ‘repatriate’ funds were made without warning by a new Grants Committee at their first meeting. They were then delegate to an Executive Group without discussion or consideration of the impact of such proposals.

3. Repatriation of 33% of the grants budget to local boroughs for local VCS work may be a hollow promise

The Grants Committee is proposing that the cut in the boroughs’ contribution be used to fund local voluntary community sector groups (‘repatriated’). While the VSF recognise this may benefit local groups, we do not believe that the Grants Committee has the power to ensure that these funds are indeed used for local VCS support. Even if council is prepared to ring fence funds initially, this cannot be guarantee in the long term.
There is also the worry that ‘repatriated’ funding could be used to replace other cuts in provision to local VCS groups. Local VCS groups would not be able to cover the vast range of services delivered at pan-London level.

4. Changes to the Grants Scheme priori ties are likely to cut funding for equalities groups, which are vital for community cohesion.

A significant reduction in funds is likely to limit the number of priority areas that the ALG can fund. It is not clear yet what services the Grants Committee will deem to be a priority, and these recommendations will only be made by Grants Executive – not the whole committee.
Indications are that groups which are seen to be ‘specialised’ and not providing mainstream support will not be prioritised. This will disproportionately affect groups that are serving the most hard to reach communities, including refugee, speakers of other languages, groups working with people with disabilities and other equalities groups.
These groups are vital for community cohesion, and to enable the needs of vulnerable communities in London to be recognised and met.

What action should ALG funded organisations be taking now?

This is a crucial period for ALG funded organisations. There are real risks of disruption or disappearance of services, particularly those which are perceived to be providing specialist services. The Voluntary Sector Forum will continue to monitor events, keep ALG funded groups informed and campaign on your behalf. However the best lobbying will come from groups themselves. It is vital that your local councillors are aware of your services so that they can support your work and add their views to discussion which will affect your future funding:

• Lobby local councillors before the Grants Executive meeting in the first week of September if at all possible, including councillors who sit on the Grants Committee.
• Lobby the Leaders Committee before the 12 th September and 14 th November meetings of the Leaders Committee.
• A key list of people to lobby is attached or available - click here.
• Use practical examples/case studies of your work, presented if possible, by people who are benefiting from your services.
• Provide examples of the implications for people in the borough if your service is no longer provided.
• You can use the attached standard letter as basis for your lobbying.
• If at all possible go and see councillors, particularly Grants Committee and Leaders Committee members.
• If you do not have the capacity to contact councillors in every borough you work in choose 2 or 3 boroughs where you have provided particular services, particularly Outer London boroughs, and ensure they know your services have benefited their residents.
• You may also wish to meet up with other groups working in a similar field to your own and plan a joint campaign. We will help you where we can.
• Councillors are sensitive to local news stories. If you know journalist on local newspapers or radio stations, speak to them about these issues.

Resources:

• A template letter to send to councillors and a list of Grants Committee and Leaders Committee Councillors is available on the VSF website www.lvsc.org.uk/vsf .
• A more detailed report of the Grants Committee meeting on the 12 th July is also available on the website.
• For more on the ALG funding review visit the ALG website www.alg.gov.uk.
• A database of the organisations that ALG funds and a description of their projects, is available at http://www.alg.gov.uk/grantresearch.asp?cat=1648 .
• A list of media organisations, including newspaper and radio stations is available at www.mediauk.com .
• To contact VSF, email tim@lvsc.org.uk .

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