Briefing No:1 On Voluntary Sector Cuts in Manchester 2015-2016

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20 November 2014

This briefing focuses on the impact on voluntary and community sector organisations but does not attempt to quantify the impact on the people who rely on the services provided by VCS organisations.

We expect more detailed information to be available within the next 2 weeks.

Due in large part to reductions in funding from Central Government, Manchester City Council (MCC) is cutting a further £59m from its budget in 2015/ 2016  and an estimated further £32m in the following year. MCC has issued a list of proposed cuts in directorate budgets that total £60.7: £41m (out of £294.4m) from the Children and Families Directorate, £6.6m (out of £67.6m) from Growth and Neighbourhoods Directorate and £13.1m (out of £52.9m) from Corporate Core. There are other proposed cuts from non-directorate budgets e.g. money that Manchester City Council pays for Greater Manchester services.

By far the largest impact on the VCS will be from cuts in the Children and Families budget however the VCS will also be impacted by cuts in the Growth and Neighbourhoods budget. The proposed cut in grants and contracts to the VCS has not as yet been totalled but estimates from MCC indicate job losses of 840 full-time equivalent posts across health, independent, community and voluntary sectors.

Some VCS organisations face such large cuts that they may not continue to be viable. Organisations that are facing significant cuts are being asked to detail the impact on their organisation and the people who use their services. The cuts in the VCS will be significantly amplified by the loss of capacity to bid for and manage funds from other sources.

Many organisations are being asked to put forward proposals for how they can reduce the size of their existing contract(s) by between 10 and 40%.

The proposals for cuts are not finalised and there is a period of consultation beginning on 26 November and lasting for 8 weeks where people are being asked to detail the impact of cuts and suggest alternatives. There is some leeway in the proposals; the Children and Families proposals total £1.5m more than the required cut.

A list of cuts can be found in MCC papers (see below) but they lack detail including the impact on jobs in the VCS. There are a number of greyed-in rows in the table that lists all the cuts which indicate where councillors are particularly concerned about the proposed cuts. The section sub-titled Voluntary and Community Sector and Housing Related Support details cuts amounting to £3.4m out of £16.9m, 20%, however there are many other cuts that will also impact on the VCS.

Some of the key proposed cuts that will impact on the VCS are:

Macc has asked MCC for further more detailed information on the proposed cuts, and on their equality impact.

Key Contacts
If you wish to discuss how the cuts may impact your organisation then contact Nathan Atkinson at MCC by email at [email protected] or by tweeting to @MCC_ComHub

Macc wants to know about how the cuts are going to impact you, email [email protected] and we encourage all VCS chief execs to join the regular meeting for chief execs which Macc coordinates.

Key Dates
December 1: Manchester City Council information event for the Voluntary and Community Sector, Great Hall, Town Hall, 10.30. Booking here
December 11: Emergency Voluntary Sector Assembly to Discuss Cuts, Mechanics Institute, 1.30pm. Register here

Key Resources
Read Mike Wild’s blog Today We Are Angry, Tomorrow We Must Talk
Budget Savings Options for the Children and Families Directorate
Budget Savings Options for the Growth and Neighbourhoods Directorate
What to offer (guidance on negotiating a cut in a contract)

Further information as we get it will be published in our weekly ebulletin.

Twitter @PolicyVoiceMacc or @McrCommCentral