1 The emerging policy environment for the voluntary and community sector Matthew Jackson, Head of Research

2 What i CLES? Independent charity Economic development and well-being Publishers: Established 1986 Planners, sociologists, geographers, local government, environmental scientists, economists Hybrid; research, consultancy, members Leading UK member org for research into Economic development About CLES

3 Objectives To understand new policy and how it is different To understand where the voluntary and community sector fits in the emerging policy agenda To explore barriers to tendering To discuss how these barriers can be overcome Today

4 Programme – the changing policy environment (Matthew) – the challenges for the sector and barriers to tendering – – break – sector specific changes Priscilla Nkwenti, Black Health Agency Neil Walbran, GMCVO – overcoming barriers to tendering Today

5 5 The changing policy environment

6 A focus upon special initiatives Regional spheres of strategy and delivery A rhetoric of social equality, inclusion and torrent down Lots of money around Focus upon sustainability Public sector managerialism and a target culture How we have done policy in last ten years? Policy approaches of last ten years

7 Regeneration and Local Economic Development Grants AND contracts Efficiencies AND effectiveness Place shaping and stewardship Outputs and targets Public sector driven and top-down delivery Tackling social exclusion, inequality and poverty Primary healthcare Right to welfare How we have done policy in last ten years? Policy themes of last ten years

8 ‘Creative disruption’, So much bureaucracy, embedded, long standing mismanagement and approaches to public service behaviours Need to disrupt and clear away From this new energy and creativity will emerge ‘Service pluralism’, No public service the preserve of the ‘public’ sector Many forms of delivery ‘Differential capacity’ It is not the states role to get involved in differences in society Coalition critique

9 A focus upon making efficiencies through joined up working Strip back of bureaucratic public sector – new geographies of strategy and delivery A rhetoric of value for money and trickle down Reduction in public sector spend – greater emphasis on private sector to create growth Short term change A focus on payment by results and demonstrating outcomes Things are already changing Emerging policy approaches

10 Economic growth Contracts, procurement and commissioning Cost-saving Co-production Outcomes and payment by results Service pluralism and cross-sector delivery Job creation Preventative healthcare and well-being Welfare reform How we have done policy in last ten years? Emerging policy themes

11 Localism and Big Society Comprehensive Spending Review Overlapping and entwined! Policy context

12 Theme 1: new freedoms and flexibilities for local government Theme 2: new rights and powers for communities and individuals Theme 3: reform to make the planning system more democratic and more effective Theme 4: reform to ensure that decisions about housing are taken locally How we have done policy in last ten years? Localism Act

13 Social action: a call for people to give up their time, effort and money to support local causes as part of a new culture of voluntarism and philanthropy Public service reform: state intervention has extended too far and public services need to be opened up to alternative deliverers, including charities, social enterprises, communities and private companies Community empowerment: seeks to raise communities’ capacity to work together and take action on the social issues that affect them. Big Society attempts to increase levels of personal responsibility and encourage communities to become more self reliant. Big Society

14 Key policy programmes: Local Enterprise Partnerships (LEPs) Regional Growth Fund Enterprise Zones Welfare reform and the Work Programme Health Reform and GP commissioning Community budgets Specific policies

15 Choice – ‘where possible we will increase choice’ Decentralisation – ‘power should be decentralised to the lowest appropriate level’ Diversity – ‘public services should be open to a range of providers’ Fairness – ‘we will ensure fair access to public services’ Accountability – ‘public services should be accountable to users and taxpayers’ How we have done policy in last ten years? Open Public Services

The challenges for the sector and barriers to tendering

17 Policy reforms have come at a cost New forms of representation are excluding groups Cuts are damaging capability to deliver big society Welfare reform is having a negative impact but increasing demand Policy is harming the most excluded Equalities focused organisations are in real danger Disproportionate economic impact How we have done policy in last ten years? Challenges – results of our research

18 Mainstreaming existing activities Demonstrating outcomes Organisational sustainability The payment by results culture Government buy-in (centrally and locally) Supporting the most vulnerable when the policy focuses on middle England Tendering and competing for contracts Are there any more? How we have done policy in last ten years? Challenges – for the VCS

19 Public sector procurement cultures Knowledge of vcs capability Complex PQQ and ITT documentation Size and scale of delivery contracts Organisational capacity to bid and deliver Demonstrating cost efficiency and effectiveness Desire and Drive from within the community Professionalism? Are there any more? How we have done policy in last ten years? Barriers to tendering

20 Sector specific changes

21 Overcoming barriers to tendering

22 How do the VCS overcome the barriers to tendering? What support is needed? How are the other identified challenges addressed? Facilitated discussion

Value for money Market failure Rationale Objectives Inputs (staffing & resources) Activities Net outputs Gross outputs Outcomes (including Strategic Added Value) Impact on original conditions Additionality adjustments Economy Efficiency Effectiveness

24 Measuring impact The LM3 model Round 1 – total spend Round 2 – spend upon (local) suppliers Round 2 – spend upon (local) direct employees Round 3 – re-spend of local suppliers upon their own local suppliers and their own local employees Round 3 – re-spend of direct employees in the local economy LM3 = Round 1 + Round 2 + Round 3 Round 1 For every £1 invested £x is re-invested within the local economy

25 Cost benefit analysis / Social Return on Investment Aims to capture the social, economic and environmental value of outcomes Based around a ‘Theory of Change’ – identification, measurement and assessment of outcomes and their financial values (shadow price). CBA can be forecasted or retrospective: What value is a project generating / Is a project actually worth doing? Which delivery option would generate the greatest level of return? For every £1 invested £x is generated in social, economic and environmental value Measuring impact

26 Questions? For further information on today’s session: Tel: