DCH 44 Local Government Association
Submission from the Local
Government Association to the Joint Committee on the Draft Charities
Bill
Introduction
The Local Government Association
(LGA) is the national voice for local communities, speaking for
nearly 500 local authorities (LAs) in England and Wales representing
over 50 million people and spending £65 billion a year on
local services.
The Draft Charities Bill
represents an opportunity for modernising the legal and regulatory
framework for charities. This will better enable them to build
on the already significant role that the voluntary and community
sector (VCS) play within the mixed economy of public service providers
and particularly in meeting the needs of "niche markets"
and in engaging communities in the planning and delivery of services.
The bill contains a number
of provisions, which the LGA believes, will encourage charities
to develop this role and explore the range of options for involving
the voluntary and community sector in service delivery and to
encourage a more flexible and innovative relationship between
local authorities and the charitable sector.
The Association supports
the proposed street collection licensing reform contained in the
draft bill, however, it will be important that the scheme does
not impose further financial burdens on local authorities.
Aspects of the draft bill
which would permit the charities to play a greater role in the
delivery of public services.
Charities already play
a major role in delivering a range of public services and the
LGA is working to encourage the wider debate so that local councils
are able to respond to the challenge of the government's agenda
for the voluntary and community sector in public services.
The role of the VCS in
service delivery needs to be complemented by ensuring that it
also plays a part in the planning and design of services. There
is a need to embrace this approach across the public sector and
not just local government, the draft bill is an opportunity to
introduce steps which will contribute to that purpose.
The meaning of "charity"
and "charitable purposes" in the draft bill covers a
wide range of issues and the Association proposes that the concept
of an ability to support the "economic, social and environmental
well-being of communities" be included on the face of the
bill to complement the well-being powers in the Local Government
Act 2000. This would directly link the purpose of local government
and the charitable sector and encourage them to work more closely
to achieve a common objective and to legitimise the role of the
voluntary and community sectors in the planning and design of
public services. In addition the LGA would like to see "environmental"
added to the social and economic circumstances prevailing at the
time of any alterations to purposes in clause 12.
The LGA supports the concept
of establishing a diverse range of service delivery models and
welcomes the introduction of the Charitable Incorporated Organisation.
This new form of organisation, like the Community Interest Company,
will provide new opportunities for local authorities and voluntary
and community organisations to develop partnership approaches
to plan, design and deliver public services.
The relaxation of restrictions
on altering memorandum etc. of charitable companies will enable
more flexibility within the VCS to identify local needs and greater
adaptability to respond to
changing circumstances
and will lead to the emergence of more robust organisations with
a stronger capacity to deliver quality public services.
The proposed power for
the Secretary of State to give financial assistance to charitable,
benevolent or philanthropic institutions will simplify the grant
making process and make the regime consistent with the powers
of other Secretaries of State.
The proposal which eases
the merger of charities is welcomed. If voluntary and community
organisations are to play a greater role in delivering public
services there is a case for ensuring that the sector is flexible
enough to respond to changing needs. This flexibility could lead
to a rationalisation of the sector with the effect of reducing
duplication, promoting greater efficiency and more robust and
sustainable organisations, capable of delivering high quality
services.
The role of the Charity
Commission will be essential in supporting effective and transparent
governance, and in building public confidence. This will be especially
relevant where charities are delivering services with public money
as agents of public authorities.
The relaxation of the
rules on small charities is welcomed. Small VCOs deliver many
public services at neighbourhood level and are the basis upon
which much work can be done in encouraging the development of
new and better services which promote the well-being of local
communities.
Arrangements for the regulation
of charitable public collections
The LGA supports the proposal
for a consistent system for charitable public collections that
will ensure proper regulation whether on public or private land.
The Association believes that local authorities are best placed
to carry out the licensing of individual collections, and in particular
face-to-face fundraising as many authorities have reported the
nuisance and obstruction currently caused by these collections.
Local authorities are also able to ensure that small local charities
get a fair opportunity and that professional charities with paid
fundraisers do not get priority.
However, the Association
has concerns about the proposed scheme. The proposal that no fee
should be charged for licence applications is not acceptable to
local authorities. The pressures on local authority funds are
already severe without new liabilities.
The development of policy,
allocation of licenses, monitoring and enforcement against bogus
collectors is a costly and time consuming activity that must be
properly funded.
The production of a policy
that identifies local capacity by considering such matters as
footfall, demographics, width of pavement etc would need independent
research to support that element of the policy. There would be
significant costs involved -
currently a survey
of unmet demand in relation to taxi licensing, for example, costs
around £15,000.
It is accepted that a
policy is a useful tool in determining licence applications, however
the Association feels that the issue is not complicated for all
authorities and that there should not be a requirement to produce
such a policy unless local circumstances warranted such an approach.
The LGA takes the view that a means of addressing this issue would
be through the Local Compact.
Charities currently pay
fees for entertainment, lotteries and amusements licences; many
employ professional fundraisers and have other significant administrative
overheads. The cost of a public collections licence would be yet
another tax deductible business expense.
The LGA suggests a fee
which is payable but can be waived at the discretion of the local
authority in line with local policy. The fee would be set locally,
in line with central guidance, at a level to recoup the true cost
of administration, policy making and enforcement.
promoting better local
government
From the Chief Executive
Sir Brian Briscoe
Francene Graham
Committee Assistant to
the Joint
Committee on the Draft Charities Bill
Scrutiny Unit
Room GlO
7 Millbank
London
SWiP 3JA
15 June 2004
Dear Francene
Joint Committee on the
Draft Charities Bill
I have pleasure in enclosing
the LGA's response to the draft Charities Bill.
The Association has arranged
for ClIr Ian Green of the London Borough of Ealing and Vice Chair
of the LGA's Economic Regeneration Executive to give evidence
to the Joint Committee, should you confirm your invitation.
The LGA welcomes the Draft
Charities Bill as an opportunity for modernising the legal and
regulatory framework for charities. This will better enable them
to build on the already significant role that the voluntary and
community sector (\ICS) play within the mixed economy of public
service providers and particularly in meeting the needs of "niche
markets" and in engaging communities in the planning and
delivery of services.
Yours sincerely
Sir Brian Briscoe
Chief Executive
E-mail brianbriscoe@lga.gov.uk
cAadlib express\irlput\2004061
5t1 7091 7.703/tover letterdot 15/06/2004
Local Government House,
Smith Square, London SWiP 3HZ Ox 119450 westminster 2 chief Executive:
Sir Brian Briscoe
Tel 020 7664 3000 Fax
020 7664 3030 Information Helpline 020 7664 3131 http:/fwww.lgagovuk
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