ALG Funding - Voluntary Action Camden

ALG Funding Review

Uncertainty over London Voluntary Sector Funding

The Association of London Government (ALG) is the umbrella body for London’s 33 councils. Its Grants Committee distributes approximately £27m each year to over 400 London voluntary and community sector (VCS) organisations to provide sub-regional and pan-London services. Although this funding has stayed at £27m a year for over 20 years (making it worth only half its 1986 value in real terms), the ALG is nonetheless one of the single largest funders of the sector in London.

As we reported in an earlier Voluntary Matters, the ALG has been consulting over the past year on changes in its grants scheme in a move towards commissioning. With the consultation over, two significant changes have been proposed (though final decisions on both proposals will not be made until November).

There is likely to be a change in the amount of money available and how it will be allocated. A reduction in overall funding is a possibility.
New thematic priority areas for future funding are being recommended. This will inevitably affect a number of projects currently funded, who may no longer be eligible for funding if they do not ‘fit’ with the new priorities.

Level of future funding

At a July meeting of the ALG Grants Committee a number of London councillors called for a percentage of ALG funding to be given back, or “repatriated”, to local councils to allocate to borough services. In response, in August the Voluntary Sector Forum (which advises, informs and represents ALG funded organisations) called a meeting to discuss the implications of this proposal for the sector. The meeting was attended by 150 individuals from across London’s VCS. Many of those attending believed it would be impossible for the ALG to ensure boroughs used money as intended, to support the VCS, so funds could be easily siphoned off for other council business. Thus a major concern was that this proposal could result in a loss, in real terms, of funds available for the sector.

The ALG then responded by releasing a press release to reassure the VCS that it would be “safe in council hands”, and that there would be further clarification about plans at the ALG Grants Executive Committee meeting to be held in September.

Budgets not yet set but will be linked to priority areas

The Executive Committee met on 5 September and outlined the process that would be followed to set budgets. First new priority areas will be agreed, then budgets will be set on the basis of these - so the total of the budgets for all the agreed priorities will be the basis for budget setting. At the time of writing then, this means there has been no decision on the level of budgets for grants next year. There is, however, still a strong expectation that there will be cuts and there is no guarantee that even the new priority areas will be immune to these.

Why new priorities?

The ALG has emphasised that the focus of ALG funding must be on genuine pan-London strategic service providers, not addressing pockets of deprivation in individual boroughs. It has also pointed out the importance of making changes to reflect new significant funding streams and changes in the responsibilities of public bodies – ie. so that ALG funding does not duplicate these in its own funding. So it would not expect to fund where there is evidence of other significant sources of funding (eg. Neighbourhood Renewal or Big Lottery), or where it was evident that the responsibility for funding a particular service lay with individual boroughs or other agencies (eg. Department for Education and Skills, Transport for London, or Home Office).

What will the new priorities be?

At the September meeting councillors assessed a list of 80 proposed areas for ALG funding in order to decide whether funding should continue in those areas. 67 were agreed, 22 were rejected. The priorities list is long so groups are advised to visit the ALG website where the full list of approved and rejected service areas is available (under Grants News, on the Grants home page at http://www.alg.gov.uk).

Areas that may no longer be a priority

The following are some of the more significant changes that have been proposed:

1. Work with children and young people
The majority of the rejected areas were around services for children and young people in London though some work with children and young people would remain a priority (visit the on-line list for details). This was largely because it was felt these services should be funded by local boroughs through DfES or Home Office funds.

2. Domestic violence
Much of the work around domestic violence was prioritised, but an area of advocacy was not.

3. ESF co-financed projects
It is recommended not to prioritise all of the ESF Co-financing programme (an estimated £3.5m which brings in and matches an additional £1.6m of ESF funds). However, the ALG are under contract to deliver this programme until 2008, so will be seeking further legal advice regarding this.

4. Other areas that were not prioritised
Promotion of access to, and participation for, BMER communities in cultural activities.
Information, advice and training services to improve health and safety in the workplace.
Promotion of sustainable transport including cycling and walking.
Health awareness and access to health support for excluded people.

Decision-making process

Step 1: The ALG Leaders’ Executive Committee will meet on 29 September to make recommendations on priorities and budget to the Leaders’ Committee.

Step 2: The Leaders’ Committee will make their final decision on priorities on 10 October. This will feed into recommendations on the budget in November.

Step 3: The Leaders’ Committee recommends the ALG budget to London boroughs in November and then 22 of the 33 London boroughs need to agree the budget recommendations by January 2007. (If 22 boroughs do not agree, the budget is set at the previous year’s level.)

Action for the VCS to consider

Decisions have not yet been made, only recommendations. Budgets have not been set and cuts have not been decided. It is important to continue lobbying for the importance of pan-London and sub-regional services. It is suggested that groups should actively lobby the Leaders, and particularly the Leaders’ Executive Committee members who each have a sectoral portfolio.

The ALG has been unable to provide lists of groups affected by the priority changes, as this could change. However, it is important that groups look carefully at the priority areas and take a view on whether they would be included or not.

If your services are not included in the priority areas, it is important to ensure that Leaders understand the value of your services, especially if it will not be possible to fund these through other sources.

We will update on the final decisions and funding priorities in the next edition of Voluntary Matters.

Last updated September 20, 2006