The recession continues to provide shaky ground for charities
A recent survey conducted by the BBC has shown that local councils are estimating spending cuts to reach levels of 10-15% over the next 3-5 years. While this is an average figure of the 93 councils that took part in the survey, some councils are estimating spending cuts to reach levels as high as 25-30%. We all know that there are going to be cuts but the question is where are they going to come? A BBC article accompanying the research suggests areas such as arts and leisure appear most at risk of cutbacks. Children's social services and services for the homeless were suggested as some of the safest areas. Further details and a local authority cuts map can be found on the BBC website.
The pattern of past recessions is that as cuts in public spending reduce the services available, more and more people turn to the voluntary sector, notably for care and support services. This of course leaves the sector facing increased demand, with reduced income.
When does all this happen?
The timescales of setting public sector spending targets are such that the April 2011 – March 2012 budget round will be the first to reflect major cutbacks. A survey published in Third Sector referred to this as the "April 2011 abyss". The survey found that major charities are preparing now for this by gathering evidence to enable them to demonstrate the outcomes they achieve and to understand where they can make savings.
Elsewhere, commentators have noted the growing insistence of public bodies on evaluation techniques, such as Social Return on Investment (SROI), to measure value for money and economic, social and environmental returns on contract and major grant funding.
