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The Minister of State, Cabinet Office (Angela E. Smith): I refer my hon. Friend to the answer I gave to my hon. Friend the Member for Glasgow, North-West (John Robertson). The recession affects different organisations in many different ways, and that is why we have provided a significant package of support that has different elements to it—support for volunteers, grants for small organisations, social enterprises and support for jobs, as well as loans to assist partnership working.
Julie Morgan: I thank the Minister for her reply. On Monday, Cancer Care Cymru, which is a local charity based in my constituency and which funds specialist cancer nurses to work closely with people who are suffering from cancer and receiving treatment in the NHS, announced that it was closing because of a slump in fundraising. That is a terrible loss for people suffering from cancer in the Cardiff area. What can we do on a general level to help to stop such closures?
Angela E. Smith: My hon. Friend has raised a very serious issue, which could be happening in different places, but I recommend that she looks at the different funding that is available. First, I recommend the hardship fund that will be in place at the end of this month. I also suggest that she looks at the package of £42 million that is available to provide real help now, and she might find that there is a way there to help the local community. Support is also being given through the National Council for Voluntary Organisations to help organisations with things such as fundraising, because that is key for things such as cancer care. She might find that there is some support there that she can talk to the NCVO about, so that her charity can get some extra support with fundraising, too.
Ann Winterton (Congleton) (Con): Is the Minister aware that the very hardest hit in the charitable sector are the small charities that provide services that are much valued locally and that will not be provided by any of the statutory or larger organisations? I am referring to small charities such as the young mental health charity in my constituency. What advice can she give Members of Parliament and others to try to help these small charities to survive the present recession?
Angela E. Smith: The hon. Lady makes a significant point. It is often the smallest charities that make a real difference to people’s lives on the ground. May I direct her to the funding that is available through the grassroots grants? About £130 million is available that is issued locally. In her area, there will be a department of a third sector organisation issuing those funds in sums of anything from £5,000 to a few hundred pounds. On the ground, that can make a real difference. If she has any problems, I ask her please to come to me, and we can direct her to the funding in her area.
Albert Owen (Ynys Môn) (Lab): The Royal National Lifeboat Institution relies totally on donations from the public. I declare an interest as a member of its national council. One of the burdens that it faces in this recession, and has faced throughout its existence, is the VAT that it has to pay on equipment and fittings. Will the Minister take that matter up with colleagues in other Departments to try to get some sort of exemption so that the RNLI can carry out its work on behalf of us all?
Angela E. Smith: I pay tribute to the RNLI for its work. In a previous life, I met its representatives on many occasions. This is a matter for the Treasury, but we will draw my hon. Friend’s comments to the attention of Treasury Ministers— [ Interruption. ]
Mr. Speaker: Order. There is quite a hubbub of private conversations taking place, and I note that some of the people busily chattering away have already had the good fortune to ask a question. I hope that they will extend a similar courtesy to others.
Community Asset Transfers
6. Mr. Graham Stuart (Beverley and Holderness) (Con): What steps her Department is taking to facilitate community asset transfers. [283143]
The Minister of State, Cabinet Office (Angela E. Smith): The stronger and more sustainable third sector organisations are, the better they can help to build stronger and more resilient communities. To that end, my Department is funding a £30 million community assets programme and we are working with the Big Lottery Fund to refurbish underused buildings in 38 communities across England. We are also working across Government to invest in community assets: for example, the Department for Communities and Local Government has invested in the £70 million Communitybuilders programme.
Mr. Stuart: I thank the Minister for her reply, but will she say what assessment she has made of the effectiveness of the Big Lottery Fund in administering the scheme?
Angela E. Smith: The scheme got off to a slow start because the work had to be put in place, but we now have 38 different organisations receiving significant grants from the Big Lottery Fund. Those grants will make a real difference on the ground, and I am pleased with how matters are now progressing.
Joan Walley (Stoke-on-Trent, North) (Lab): In my constituency, the local council wants to transfer the assets of community centres to the local community. However, is my right hon. Friend aware that the people running centres such as the Norton community centre do not want the responsibility of taking on contractual and employment liabilities?
Angela E. Smith: My hon. Friend raises an issue that concerns many people. When we talk about community asset transfers, we are talking about the Government putting in money to support organisations and communities. The will to do that has come from the communities themselves. With community asset transfers, the liability is transferred not to the community but to an asset. Local councils must realise that the scheme is funded by the Government for local communities. It must not be forced on local communities, but should be carried out with their co-operation and direction.
Third Sector Funding
7. Mr. Stewart Jackson (Peterborough) (Con): How much funding her Department has allocated to charities and the voluntary sector from the (a) Capacitybuilders and (b) Communitybuilders fund in the last 12 months. [283144]
The Minister of State, Cabinet Office (Angela E. Smith): In the last financial year, Capacitybuilders allocated over £24 million to charities and voluntary sector organisations. Communitybuilders was announced in the Department for Communities and Local Government White Paper “Communities in Control” in July 2008. As planned, the programme will be open for applications this summer, and its national partner will be the Adventure Capital Fund.
Mr. Jackson: Will the Minister say what progress has been made with the reform of gift aid?
Angela E. Smith: The gift aid programme is making good progress, and it gives charities a significant amount of additional money. A recent specific reform is that the profits generated when goods given to charity shops are sold can be donated as gift aid to the organisations involved. There is further work to be done with gift aid, and I understand that the Treasury is looking at it at the moment, in consultation with Ministers.
Grassroots Grants
8. Mr. Anthony Steen (Totnes) (Con): What criteria her Department uses to allocate Grassroots grants to local community organisations. [283145]
The Minister of State, Cabinet Office (Angela E. Smith): The grassroots grants scheme is worth £130 million and provides small grants and endowments for local community groups. The beauty of the programme is that local communities make the funding decisions, based on local priorities. So far, almost 10,000 grants have been awarded, to the benefit of many organisations that had not benefited before. The criteria set by the Government are that the recipients are bona fide third sector organisations with an income below £30,000, that they meet the needs of the local community and that they are driven by committed local volunteers.
Mr. Steen: The number of children trafficked into Britain is increasing. The police cannot cope, and local authorities are finding that the children abscond from their homes. Why will the Government support local, voluntary and community groups more, as they can provide guardianship, legal advice and support for children in distress? I hope that the Minister does not mention the POPPY project, as that deals only with adults. Why are the Government not supporting voluntary and community effort more, when the public sector is failing?
Angela E. Smith: I am not aware of any applications under the grassroots fund for the sort of organisations that the hon. Gentleman has referred to. However, the money in the grassroots fund has been well received, and we will be happy to look at applications from any organisation.
Charities (Economic Downturn)
9. Mr. Philip Hollobone (Kettering) (Con): What steps the Government have taken to assist charities that have been affected by the failure of Icelandic banks; and if she will make a statement. [283146]
The Minister of State, Cabinet Office (Angela E. Smith): The Government have taken unprecedented steps to help third sector organisations affected by all aspects of the international economic crisis. We have listened to the sector, including those organisations affected by the Icelandic banking collapse. The packages announced in the real help for communities fund and the more recently announced hardship fund total £59 million. That clearly demonstrates our commitment to supporting the sector through difficult times.
Mr. Hollobone: A large number of charities have had their assets frozen as a result of the Icelandic banking collapse. Why have the Government ignored the Treasury Committee’s recommendation for compensation, and will the Government consider establishing a short-term Treasury loan fund to help out sound charities facing genuine hardship? [Interruption.]
Mr. Speaker: Order. Can we have a bit of hush, so that we can hear the Minister’s reply?
Angela E. Smith: The Government are doing an enormous, unprecedented amount to help charities and voluntary sector organisations that are facing difficulties in the recession. The hon. Gentleman outlined the situation facing one group of organisations. I have to say to him that it would be difficult to single out one particular organisation or reason. The hardship fund that is in place, which is real help now, is a greater package than has ever been in place to help charities through difficult times. It has never been matched by any previous Government.
Sir Gerald Kaufman (Manchester, Gorton) (Lab): Will my right hon. Friend congratulate the beloved Christie cancer hospital in Manchester on its successful campaign to obtain a refund of charity money lost following the collapse of an Icelandic bank? Will she thank the Government for arranging that refund, and will she congratulate Lord Bradley on heading that successful campaign?
Angela E. Smith: Everyone is always pleased—indeed, the Prime Minister has said so himself—when organisations that are in difficulties gain support. The refund was a local decision, taken by NHS North West, responding to a local need. We are all very pleased to see Christie getting the support that it deserves.
Prime Minister
The Prime Minister was asked—
Engagements
Q1. [283119] Bob Spink (Castle Point) (Ind): If he will list his official engagements for Wednesday 1 July.
The Prime Minister (Mr. Gordon Brown):
With your permission, Mr. Speaker, the whole House will wish to join me in welcoming today Her Majesty the Queen’s approval for a new form of recognition for the families of those members of the armed forces killed on operations and as a result of terrorism. Her Majesty will be making
an announcement today, directly to the families of armed forces personnel, in which she will make clear her personal attachment to the new recognition. I am confident that that will be a very special and fitting tribute indeed to the great debt that we owe to all those who die on operations, and to the enduring loss shouldered by their families.
This morning I met ministerial colleagues and others. I shall have further such meetings later today.
Bob Spink: Our armed forces are the bravest and the best in the world, and in the armed forces day celebrations on Saturday the people showed how much they love and respect them.
May I ask the Prime Minister about swine flu? A number of people in Castle Point—adults and children—have tested positive, and the local campaigning newspaper, the Echo, is keen to reassure people that progress is being made. What will he do next to tackle the problem?
The Prime Minister: I share with the hon. Gentleman the respect that he has stated for our armed forces, and for the armed forces day on Saturday, when thousands of people in all parts of the country wanted to give recognition—deserved recognition—to the work that our armed forces do every day.
The hon. Gentleman raises the question of swine flu. He may know that we have had an emergency meeting of the Cobra group—the civil contingencies secretariat—today to look at the incidence of the disease. I have to report to the House that the total number of confirmed cases for the UK now stands at 6,538. That compares with just 2,236 last week. That large rise in numbers of confirmed cases means that a more flexible and local approach will be used in areas where there are higher numbers of cases reported. The Health Protection Agency, in conjunction with the NHS, is doing excellent work to limit the spread of the virus. We continue to monitor the situation closely, making sure that arrangements are in place so that the UK remains well placed to deal with the pandemic. We will adapt those arrangements as the situation changes, and my right hon. Friend the Health Secretary will make a statement to this House tomorrow on the outcome of our deliberations.
Mr. Jim McGovern (Dundee, West) (Lab): I welcome what the Prime Minister said about the armed forces. My grandfather, Hugh MacDonald, served in the Black Watch during the second world war. He is buried in the Black Watch section of the military cemetery in Gibraltar. The House will excuse me for using Scottish vernacular, but I fear that he might be birling in his grave at the thought that the famous red hackle of the Black Watch may be no more. What assurances can the Prime Minister give, not only to me but to serving personnel and veterans, whom I met on Saturday, that the Black Watch red hackle will remain the symbol of the Black Watch?
The Prime Minister: I, too, met Black Watch servicemen on Saturday and people who have contributed greatly to our armed forces. I can assure my hon. Friend that the tradition that he talks about will be maintained as long as the Army exists.
Mr. David Cameron (Witney) (Con): I welcome what the Prime Minister said, and I agree with him about the Queen’s new recognition for our armed forces—we should all be incredibly proud of what they do on our behalf.
Last week, it was demonstrated for everyone to see that capital spending under Labour will be cut. Now I want to turn to total spending. Does the Prime Minister accept that his own figures show that once the Treasury’s forecast for inflation is taken into account, total spending will be cut after 2011?
The Prime Minister: No, total spending will continue to rise, and it will be a zero per cent. rise in 2013-14. In 2011-12 and 2012-13, it will continue to rise— [ Interruption. ]
Mr. Speaker: Order. The Prime Minister’s answer must be heard.
Mr. Cameron: I think that that answer gets zero per cent. The Prime Minister said very clearly no, it will rise, so can he explain a copy of a Treasury presentation that was given to us? On page 7, there are headings for current spending and capital spending, and the headline says very clearly: “Reduction in medium-term spending”. May I ask the Prime Minister, if even the Treasury is giving presentations around the country saying that public spending as a total is being cut, why cannot he admit to the truth?
The Prime Minister: I have told the right hon. Gentleman previously that current spending is going to rise, and that capital spending, as I explained last week, will fall after 2011. These are the public spending projections for the future, but I have to tell him that the debate about public spending is about how we return to growth and jobs in the economy. The reason we have advanced spending to 2009-10 is so that we can spend to get out of recession. We put forward proposals for homes and jobs, and for more money in 2009-10. The Opposition have rejected this expenditure. We have put forward proposals for expenditure in 2010-11—increasing expenditure, and the Opposition have rejected that.
The capital spending that we have advanced to 2009-10 and 2010-11 is therefore not available after 2011. This is precisely the way in which a Government will act to take the country out of recession, and I must therefore ask the right hon. Gentleman why— [ Interruption. ] Oh yes. His shadow Chancellor should explain why he was going into television studios yesterday saying that he was going to cut schools now, cut Sure Start now, cut the September guarantee for school leavers now, and do nothing about unemployment. That is surely the issue: we cannot get out of recession unless we spend now on the services that we need.
Mr. Cameron: Today we see a Prime Minister in full retreat. In the first answer, he says that we are going to get a zero per cent. increase in public spending—that is a new one. In the second answer, he finally admits that he is going to cut, and cut deeply, capital spending. He talks about the debate about public spending: the debate is about whether the Prime Minister can be straight with the British public. Let me ask him again. He stood at the Dispatch Box and talked about total spending year after year—that is the figure that people are interested in. As the Treasury itself says, when it comes to total spending, there is a reduction, not a freeze, in medium-term spending—I am glad that the Prime Minister is talking to the Chancellor for the first time in weeks—and given that it is talking about a cut, will the Prime Minister stand there, give a straight answer and say that once we allow for inflation, total spending is being cut?
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