What might the spending review mean for you?

We've brought you the top lines and pointers on how to ride the wave of the comprehensive spending review.

Some headlines

Responses from the sector

What this means for you

Other support to help you through

Spending Review

20 October 2010

Among the details announced were:

  • £470m over the next four years will go towards building the voluntary sector's capacity so that it can deliver the government's Big Society agenda. This will provide 5,000 new community organisers, and a pilot for the National Citizen Service
  • of this, £100m transitional fund for to help the voluntary and community sector adjust to new public spending budgets.
  • councils in England will face cuts of more than 28%, but they will have greater powers to borrow. How will this play out in the localism agenda?
  • £1 billion will be taken from the "protected" NHS budget in England to help meet the costs of social care. How might this affect changes to care and carers?
  • existing social housing tenants' rents will be unchanged but new tenants will be offered intermediate rents at around 80% of the market rent. Mr Osborne forecasts this will allow the building of up to 150,000 new affordable homes over four years. How will more homes affect climate change?
  • an extra £2 billion promised for social care by the end of the parliament
  • the state pension age will reach 66 in 2020, four years earlier than planned. See what this might mean, in light of our ageing population.
  • Sure Start services will be protected in cash terms and 15 free hours of early education and care for all disadvantaged two-year-olds will be introduced
  • the green investment bank promised by the coalition will receive £1 billion in funding, half of what was expected and a sixth of the amount many say is needed. How does this relate to the green taxation agenda?

The text below has been taken from the HM Treasury twitter feed

  • The spending review is about three principles: reform, fairness and growth
  • "There needs to be a dramatic shift in the balance of power from the central to the local"
  • Overseas development will reach 0.7% of national income in 2013.
  • Chancellor: "A total of £2 billion additional funding for social care to protect the most vulnerable"

You can find an overview of the main announcements on the Treasury website

The graphs showing the figures in the spending review can be found on this flickr page

graph showing debt interest payments compared to some other areas of public spending

If you want to know what the spending review could mean for your area you can find it here.

What do some in the sector say about the cuts?

 

Richard Hawkes, chief executive of disability charity Scope (who have worked with us to produce specific drivers - keep an eye out for them!)
"Despite the continuing rhetoric that spending cuts will be fair the Chancellor's announcements today are anything but. Local government will lose 28% of its funding over the next four years, compared to just 14% reductions to the royal household, and this will hit disabled people and their families particularly hard."

Phil Bloomer, Oxfam's campaigns and policy director, said
"David Cameron and George Osborne deserve real credit for their promise to stick to Britain's aid promises during these difficult economic times. The coalition has taken the tough choice to prioritise the poorest people on the planet during the bad times as well as good."

But what does this mean for you?

Well this will all be clearer when details are released in the weeks and months that follow, as departments settle into their newer, tighter belts.

But you can start planning for coping with the fallout now. This means if the worst does happen you'll be more prepared and more likely to stay afloat. To kickstart you, why don't you have a look at our drivers? We've thought through some key trends which might kick in more as the CSR bites:

  1. efficiency and value for money
  2. level and sources of VCS income
  3. credit crunch
  4. economic downturn
  5. levels of public spending

Other support to help you through

NCVO has been crowdsourcing the cuts so far for a while. Have a look at their spreadsheet You'll be able to see who's been affected so far. Maybe it's someone you work with? Or someone else who does what you do - does this indicate a potential threat for you?

Karl, NCVO's head of research has some pointers on how to reduce your spending. Make yourself more cost-efficient and funders will always look more warmly on you!

And there's a resource-packed page on the NCVO site -Coping with Cuts: Practical Advice Guides.

It has great guides on a range of issues like How to reduce waste or Demonstrating your impact.

Finally, if you feel you need more interactive support - have a look at NCVO's offer for consultancy on getting ready for cuts.

 

Last updated at 16:00 Thu 03/Feb/11.
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