DAVID Cameron’s Big Society will fail in the North East unless ministers intervene to help hard-hit charities, the prime minister has been warned.
A detailed look at how charities in the region are coping has revealed worries that the North/South divide will widen as spending cuts see some organisations close down.
The region’s dedicated think tank, ippr north, has revealed areas such as London, with many large firms based there, are unlikely to see charities hit as hard as those in the North East.
Forty £1m or more donations were made in London in 2009/10 compared with only six in the North East. Already the region’s charities have reported a 62% decrease in funding. It is thought council grants to charities have been cut further in the North East than in any other region.
The ippr north report warns: “Those areas with a weaker private sector are also those where organisations are more reliant on public funding, so the withdrawal of public funding and a move to greater reliance on philanthropy could doubly disadvantage organisations in some areas, such as the North East.”
North charities contributing to the report said an over-reliance on public philanthropy would see unpopular causes disadvantaged.
As one put in the report: “The problem is kids and cats versus ex-offenders and druggies.”
Ed Cox, director of ippr north said: “Our research shows that the Big Society will not be a fair to the North without changes to Government support for philanthropy and charitable giving.
“Goodwill is beginning to wear thin as people in the voluntary and community sector try to deal with budget cuts, and organisations in the North cannot turn to big corporate or high value donors to make up the gap as London-based organisations can.
“We need to target what little money there is to organisations that struggle to find it elsewhere. Less attractive organisations that lack donor appeal or those operating in areas where business or corporate gifts are hard to come by should be a priority.”
He was backed by Jo Whaley, policy officer at the Voluntary Organisations Network North East, who today sent a blunt message to the prime minister.
She told the Journal: “The future for the building bricks of the Big Society, the civil society in the North East, is looking bleak.
“The heavy reliance on public sector funding in the North East is likely to lead to large-scale closures of services, loss of skilled staff and the ultimate closure of some organisations, as the cuts bite.”
She added: “Now is a time for innovative funding solutions to help voluntary and community sector organisations rise to the challenges from the public sector spending cuts and the “Big Society”.
The organisation has started a support service to help charities wanting to secure alternative sources of funding.
Speaking on behalf of the Government, A Cabinet Office spokesman said: “This report is a welcome contribution to the debate and many of its recommendations are in line with our approach.
“We want to make sure government funding goes to the communities most in need. Other work including setting up the Big Society Bank, tax reforms announced in the budget and new opportunities for charities and social enterprises to deliver public services will be worth billions of pounds.
“The North has strong traditions of community and entrepreneurialism that must be harnessed to make the most of these opportunities.”
