My Lord Mayor, elected members, ladies and gentlemen. Thank you for this opportunity to address you on behalf of the city’s voluntary sector.
The impact of the City’s budget proposals will result in a reduction of around £18 million within the voluntary sector; a 48% cut from £37 million to £19 million. On top of that there are reductions in most other funding opportunities. This will mean hundreds of compulsory redundancies. (34 in my organisation alone.)
This cut equates to 450 jobs in the voluntary sector. However, that £18 million is currently re-spent again and again. If just 40% of the money is re-spent locally and 40% of that is re-spent and repeated the ripple effect amounts a loss of 900 jobs and loss of £30 million to the local economy. However, the real impact will be on the lives of tens of thousands of people who are supported in daily living, gaining skills, improving their environment, carers, children, young people older people and adults with facing many problems and barriers to inclusion. As one service user said “The impact it will have on our lives, it will be a nightmare!”
I have a long list of organisations affected. Some losing 96% or more of their funding some retaining 96% or more.
Most people said they have received letters, but do not know yet what affect this will have on their services. These organisations have already prioritised service delivery, reduced costs, and made compulsory redundancies. It shouldn’t happen, but in one case 2 paid workers are working in excess of 40 hours a week for part time pay and did not get paid for 3 months last year. Such is the passion and commitment of people in the voluntary sector that you have to prise their fingers off the job!
Now, just four weeks away from when the cuts bite many organisations still don’t know what funding they will receive from the City and this uncertainty makes it impossible to plan, retain staff and maintain effectiveness. Some have said to me that certainty, even certainty of closure enables people and organisations to move on and plan.
The Council has, so far, shown great political maturity in working together on this budget and have been unanimous in their agreement that the settlement from central government is unfair. In debating the different issues and in agreeing or rejecting amendments there will be losers, whatever you do.
Do you preserve jobs in the city or jobs in the City Council?
How do you balance demand for children’s’ services with those for older people?
You will all have differing priorities, but I urge you not to lose sight of the voluntary sector and the grassroots impact it has in communities. These organisations mostly have nowhere else to go for funding. Charitable giving has reduced, corporate giving has reduced and so has investment income to grant making trusts.
This budget has necessarily been put together in a very tight timescale without time to work through the consequences or explore some other options.
After this tsunami of cuts is over we will look around and realise some vital service has been a casualty and is no more. We may even wonder why some have survived. It is vital that you get much closer engagement with communities and voluntary sector organisations if we are to have a more deliberative approach to the cuts that seem inevitable in future years. The voluntary sector has suffered heavy casualties in this budget. Next time we must know what the impact is going to be in advance so wiser and evidence based choices can be made.
In appealing against this disproportionate cut in voluntary sector funding I am not denying your right to govern or approve this budget, I am appealing to the rest of humanity in this country to ensure that the most deprived city in England is treated fairly.
Alan Lewis
Chief Executive
Liverpool Charity and Voluntary Services