A review of how Cardiff Council awards grant funding has been undertaken to create a more transparent and consistent system and ensure the local authority maximises the value of its relationship with the voluntary sector.
Against a backdrop of the current financial challenges and with pressure on all Council service areas to make savings in order to bridge a potential budget shortfall of £125m over the next three years, the way that grants are awarded is being looked at to ensure there is greater fairness in funding decisions and better service delivery based on requirements and community priorities.
The Council currently provides £2.7m in grant funding to a wide range of third sector organisations but many grants are historic with no clear indication of strategic need.
Existing grants that deliver key services have been identified and sorted into three packages – Care Support and Education, Advice, and Homelessness Prevention and Intervention which total over £1½ million. It is being proposed that funding levels for these key services will be protected at 2013/14 levels moving towards a new procurement system being put in place.
Other grants awarded to infrastructure and key equality organisations, which total £477,455 for this current financial year, are recommended to continue with a 10 per cent reduction in 2014/15, moving to commissioning arrangements for 2015/16. Discussions are ongoing with these providers to consider ways that the Council should allocate this funding in the future including the option for more joined up ways of working, possibly on a regional basis.
As part of the review, it is proposed that a number of grants totalling £490,483 should cease from April 2014. However in recognition of the fact that there will still be some instances where there will be requirements for small levels of funding for agreed local priorities and in line with the council’s proposals for improving neighbourhood management in the city, a new neighbourhood fund of £180,000 is proposed to be established for the city’s six neighbourhood partnership areas. If the proposal is agreed, applications for this funding would have to demonstrate evidence of need, have the ‘sponsorship’ of an elected member and clearly support community priorities.
Finally, some grants identified by service areas as delivering key strategically important services are being recommended to be transferred into the service area budget.
Cabinet Member for Communities, Housing and Social Justice, Cllr Lynda Thorne, said:
“Once again this year, the Council will be tasked with making some difficult decisions as we plan ahead in the face of severe budget shortfalls. Whilst the financial outlook appears bleak, this has created an opportunity for the Council to review our grant arrangements and examine how we can achieve the best outcomes for our citizens, which is our priority.
“The third sector is a significant partner for the Council and plays a major part in contributing to local community life. It’s also clear that a large number of the grants we award deliver key services to Cardiff’s citizens and in view of the current financial challenges and the resulting rise in demand for services, it’s essential that we have a system for awarding grants that is fair and open.
“Following the review, the resulting proposals would provide more stability and create a greater opportunity for a wider range of third sector partners to deliver innovative schemes across the city.”
A spokesperson for the third sector representatives on the Cardiff Partnership Board said:
“The Budget proposals for the review of Council grant funding arrangements published today, as expected sets out the tough financial climate that exists, a climate that it is clear will not improve in the foreseeable future. As a key partner of the Council, the third sector is aware of the economic pressures that this climate brings and the difficulties that this will present for the third sector and its funding. We have been involved and will continue to be involved with the Council in seeking to find ways, through for example greater collaborative working within the third sector, to mitigate the effect of the proposed cuts and to ensure that the impact to the valuable services provided by the third sector to the people of Cardiff are kept to a minimum.”
Subject to the outcome of the consultation process on these proposals, the total savings as a result of ceasing some grants and reducing others in 2014/15 is £452,380, with £180,000 of this saving being used towards the neighbourhood management fund. Following the consultation,the proposals will form part of the budget setting process.
