I support Community Links' assertion that public spending cuts could doom the "big society" (Report, 30 December). We have recently surveyed voluntary and community sector organisations in the north-east. Of those who responded, 88% source some or all of their funding from the public sector and 62% of these have already seen a decrease in their funding. More than a third have made staff redundant and nearly half are using their reserves. In this climate, where most organisations are experiencing an increase in demand for their services, 64% expect to be closing a service in the next year, 50% are considering reducing the number of beneficiaries they support, and 26% say they may close.
If the big society is to mean anything, the voluntary and community sector has a vital role to play, with its track record of reaching the parts that others cannot, providing essential services to the most vulnerable in our society at a local level, and using and supporting trained volunteers in the most effective ways. Instead, many organisations see themselves going to the wall in the next 12 months and most of the rest will be battling to meet increasing demand with fewer resources.
Mike Worthington
Chair, Voluntary Organisations Network North East
? On 4 January 2011, VAT will rise from 17.5% to 20% and result in Sue Ryder losing �1m a year in irrecoverable VAT. The charity sector as a whole will lose a further �145m, on top of the �1bn already lost. With �1m a year, we could fund a 16-bed hospice for six months, or provide 50,000 hours of in-patient care. On the same day, we are launching a campaign to hold the government to its commitment to cut red tape for charities. Companies, local authorities and some areas of the NHS can reclaim VAT, yet our charitable hospices, care centres and homecare services are left to swallow this burden. The "big society" will only be possible if we are afforded the same benefits as the NHS and local authorities.
Paul Woodward
Chief executive, Sue Ryder
Source: http://www.guardian.co.uk/society/2010/dec/31/funding-pressure-on-charities
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