Cuts threat - Mayor asks Secretary of State for transfer of London grants scheme

Source: The Mayor of London
Published Friday, 29 September, 2006 - 06:13

Ahead of the meeting today of the Association of London Government executive committee meeting, Ken Livingstone has written to Ruth Kelly, Secretary of State for Communities and Local Government, to ask for the transfer of voluntary grants funding to the Mayor's Office in order to protect London-wide grants now under threat from cuts.

The Executive committee meeting is expected to approve massive funding cuts for voluntary groups across London.

The Mayor’s letter to Ruth Kelly suggested opening ‘discussions with you regarding the transfer of the grants scheme back to city-wide London government, to the office of the Mayor of London.'

Since members of the Association of London Government Grants Committee first proposed cutting funding for voluntary groups by up to 33 per cent, the Mayor has spoken in defence of the hundreds of organisations across London who provide services for some of the most vulnerable and needy in the community.

The mayor is particularly concerned about plans to "repatriate" resources to individual councils, with the effect of breaking up the London-wide remit of the scheme and leading to cuts to grants in London overall.

Groups targeted for potential cuts include organisations supporting services for children.
 
The Association of London Government funds 409 voluntary groups including Age Concern London, Barnardo's, Community Service Volunteers, Gingerbread, London Irish Centre, London Voluntary Service Council and Victim Support London.

Mayor of London, Ken Livingstone's letter to the Secretary of State says:

'I am deeply concerned about the future of grants in London following the recent decisions of the London Councils Grants Committee.

'In recent weeks, some members of the Grants Committee have openly advocated significant budget cuts and there is backing for plans to break up the London-wide nature of the Committee’s role by "repatriating" resources to the boroughs with no guarantees of ringfencing to the voluntary sector.

'Such plans would, by definition almost certainly mean that poorer areas lose vital funding and services.

'As you know, the grants function now carried out by the boroughs was originally with strategic-wide London government until the abolition of the Greater London Council. Grants are allocated on a strategic basis and any proposed cuts or change in priorities would have London-wide implications and is therefore a matter of considerable concern to my office.

'I would like to open discussions with you regarding the transfer of the grants scheme back to city-wide London government, to the office of the Mayor of London.

'I have already guaranteed publicly that should the scheme be transferred I will not cut the overall budget, ending this atmosphere of instability and uncertainty for the voluntary and community sector and its beneficiaries.'

Ends.

Notes for editors:

The Association of London Government Executive meets at 2pm Friday 29th September.

The Executive of the Grants Committee met on September 5th and agreed a set of services that were considered ‘not a priority’ for Association of London Government funding. Services supporting some of London’s most vulnerable children declared that they were ‘not a priority’ for grant funding. The Association of London Government funds sixty-eight voluntary groups who provide vital services for children across London.

A list of groups funded by the Association of London Government can be found on - http://www.alg.gov.uk/grantsearchresults.asp?cat=1648

Elizabeth Balgobin, Chief Executive of the London Voluntary Service Council, said her organisation was ‘very concerned’ about what was happening on Sept 22nd 2006.

Until its abolition in 1986 the London-wide grants role was carried out by the Greater London Council.

MEDIA ENQUIRIES: Press information is available from Joe Derrett in the Mayor’s Press Office on 020 7983 4635