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Regional Forum Annual Conference, Friday 28th November 2008, St Marys, Sheffield

Last Friday was the Yorkshire and Humber Regional Forum's annual conference. The focus of the day was ‘Engaged and Independent: the VCS and government relationship' i.e. "Is the third sector able to maintain an autonomous critical voice whilst engaging in government structures and contracting?" Keynote speakers included the Rt Hon David Blunkett MP, Stuart Etherington of NCVO and Barry Knight, social scientist and author of ‘Voluntary Action'.

Rt Hon David Blunkett MP 

Improving engagement with the VCS
David Blunkett MP talked about the importance of civil society. He felt there was a need to ensure those working in the sector are valued. He emphasised the need for Local Authorities to be better trained in working with third sector organisations. He recognised that if authorities pull the plug on the voluntary sector they will incur greater costs down the line and that there should have been, and need to be exit strategies for time-limited investments such as Objective 1.

An independent VCS
He would like to see more independent and enterprising community organisations, and for them to maintain a critical voice. 

‘Mutual Action, Common Purpose: Empowering the Third Sector'
A government paper including the following proposals:

• To improve commissioning services and contracts to be more inclusive of the Third Sector. They need to encourage a partnership approach so that big contractors can draw on local expertise. Contracts need to be long enough and flexible enough to leave room for the entrepreneurship and imagination of small groups.
• To revamp the Compact 
• Experiments in neighbourhood-based audits of statutory agencies in disadvantaged areas, drawing on the VCS for knowledge and advice. 
• To pilot incentivised volunteer schemes for young people within statutory agencies.
  

Stuart Etherington

Changes in the VCS in the last 10 years
Stuart Etherington focused on developments in the VCS over the last ten years and in light of the current economic climate. He talked about how the relationship with public services and government has grown closer, with 50% of VCS funding now coming through contracts and all political parties now wanting to work with and consult the VCS. As a result the sector has had to change, and focus more on contract management and internal policies.

The NCVO has recommended many changes, including the creation of the ‘Office of the Third Sector' and the development of research and higher education about the sector.

The VCS in the economic downturn
Currently the VCS faces a reduction in Lottery funds, as well as possible effects on local government funds. Charitable donations will eventually be affected as will the value of community assets. Meanwhile demands on community services will increase as unemployment increases and social society is affected by increased deprivation.

In response he suggested that the VCS should collaborate more, and pool resources in order to be more efficient. There should be funds to assist the sector in modernising and working together. The government should also think about providing funds to help organisations acquire assets.

An opportunity
Stuart ended with a positive look at the opportunities that may arise from a recession. The whole economy is baring the consequences of the financial risk taking of a few and cooperatives and mutuals not trading in derivatives have emerged as the safest banks. It could be possible for cooperatives, trade unions and the voluntary sector to use this position of relative security to re-kindle collective responses to finance, care and social cohesion.

Barry Knight 

Commercialisation in the VCS
Barry Knight talked about ‘Values, Independence and Power in a Post Commercial Age'. He described how the voluntary sector has become increasingly commercialised since the late 1980s when legislation began to replace grants with contracts. Since then the sector has moved from core funding and project funding, to service level agreements and commissioning. As a result his research concludes the sector has increased its income and asset-base but it has lost its independence and its sense of the possible - ‘the fire in its belly'.

The VCS niche
Research which he has conducted showed that the added value of the voluntary sector were things like risk-taking, persistence, passion, a holistic and person-centred approach and working in between structures. These, he said, are not characteristics which fit in a contracting environment. The VCS should be building associations, engaging and empowering people, not a delivery vehicle for the state.

VCS weaknesses in a commercial environment
The weaknesses of the VCS, he found, were evaluation, the organisation of their knowledge and communicating their knowledge to those outside the sector i.e. showing that they're good at what they do, all of which puts the sector at a disadvantage in a commercial environment. Commercialisation creates commercial organisations (as has happened for example in the voluntary housing movement) and therefore puts an independent VCS out of business.

He argues for a return to grant funding as the only form of funding which can support the independence and values of the VCS.

The current downturn and an opportunity for social democracy
The economic downturn will cause a re-evaluation of the relationship between the state and commercial sectors, a process which he believes will necessarily include a shift in the position of the third sector - civil society. There will be a social democratic movement, a rebuilding of connections between people and of participation.

Open Space - Open workshops

The afternoon's open workshops discussed topics chosen by the delegates.

One of the workshop topics was "How can we have a cooperative commissioning process?" The conclusion of the group was that commissioners need to be prepared for partnership in contracts, even though it may be more complicated and challenging, because it enables local groups to deliver large contracts. The group discussed a case study in Bradford which successfully drew down funding for a consortium of infrastructure organisations. The process was not without its fall outs but its success was considered to be partly down to the partnership having existed prior to the contract appearing.

Another workshop focused on the role of membership as organisations grow. The group concluded that membership are a type of beneficiary or service user. It was recognised that as organisations grow, their service users can get sidelined in the decision-making processes. However as it is a key feature of the VCS that the service user be at the heart of their delivery, and if possible be able to influence the direction of the organisation, it is essential that organisations remain in touch with them.