Friday, 22 February 2019

BUDGET 2019-2020 – HIGH RISK OF COUNTER PRODUCTIVE CONSEQUENCES

PAVO, acting on behalf of Powys’ 4000+ community groups and voluntary organisations, has been in discussion with PCC leaders regarding the budget proposals for 2019-2010.

PAVO does not underestimate the very difficult, financial challenges and pressures faced by PCC. Whilst we champion the contribution of Powys’ third sector, we would not argue for immunity or favoured treatment. However, we would press the need for fair treatment and informed decision making. 

We have been asking for copies of meaningful assessments of the impact of budget proposals that affect third sector organisations.

  • It is disappointing that, to date, such impact assessments that have been prepared in advance of the Council Meeting on 21 February 2019, fall far short of being a meaningful assessment of what the real impacts of proposed budget savings would be. In particular: 
  • No impact assessment has been published for EDPO5 -100% reduction of community enablement support fund.
  •  To our knowledge no discussion has taken place with organisations affected by LRP02, LRP03 and other proposals to ascertain what the impact would be in real terms upon services, activities or jobs. The assessments appear to have been produced as a ‘desk exercise’ rather than as an exercise in furnishing decision makers with the accurate and detailed information needed to enable informed decisions. 


In addition to the issues of discretionary expenditure, the documentation published contains little detail of the nature of proposed savings in statutory services e.g. social care. It is, therefore, impossible to ascertain the nature of these cuts and their effect on people, services & organisations. 

We believe there to be a significant risk of unintended consequences and counterproductive outcomes for people and communities. 

PAVO appreciates that there are a huge range of very difficult issues requiring your collective decision within the proposed budget, and that future Council support for community groups and voluntary services to provide ‘what matters’ to people is only one aspect of a wider package of decisions. 

Nonetheless, we ask you to satisfy yourselves that, when making your decisions, this issue is not overlooked. 

In its present situation of having to do ‘more with less’ and seeking to transform its services and how they are delivered, Powys County Council needs a strong and active voluntary sector in the county. 

Reducing or removing the Local Authority’s financial support of these organisations and services will diminish their capability to work alongside the Council in the common cause of transforming how services are provided in Powys, both now and in the future.

 PAVO remains committed to working with Powys County Council on its service transformation and economic regeneration journey. But any decisions taken now that damage the capability of community groups and voluntary organisations, be they big or small, to carry out their activity will only serve to weaken our Sector’s ability and confidence to work alongside the Council in the months and years ahead. 

Should you wish further information about the issues covered in this Briefing or would like to discuss them PAVO’s Trustees and Staff are happy to assist. Please contact us on 01597 822191 or info@pavo.org 

IMPACT ILLUSTRATIONS These are examples of impact based on enquiries received by PAVO from third sector groups, together with information supplied to PAVO: 
1. MULTIPLIER EFFECT ADVICE ORGANISATION – receives grant of £3,800 from PCC. If the grant is removed the ability of the organisation to pay core costs eg rent will be severely compromised. If the organisation’s viability is put at risk £30,000 worth of services will be lost. 
2. RIPPLE EFFECT VILLAGE HALL – probable removal of core grant by PCC that puts at risk the future of the important community facility. If the hall closes, there is no, obvious alternative for the community groups that rely on the hall for their activities – community choir, lunch club, youth group, yoga class etc 
3. CARE EFFECT ART ORGANISATION – probable removal of core grant that the organisation uses to pay essential bills eg electricity, gas etc. Although it receives grants from other sources to fund service provision, these grants do not enable to organisation to pay for core costs. If the organisation’s future is put at risk it will no longer be able to support the wellbeing of people through its art services, including an inspiring services developed with those that live with dementia and their carers. 
4. SUPPORT EFFECT PAVO – PAVO’s core service is to support Powys’ voluntary sector by helping to strengthen volunteering, nurture sustainable funding, foster good governance and facilitate an influential, strategic voice. The proposed removal of the core grant to PAVO will significantly reduce our ability to develop the sector at a time when Powys needs its third sector more than ever. 

NB: The type of impact illustrated above has not been captured in any impact assessment prepared for the budget discussions. In some instances an impact assessment has not been prepared at all. If impacts such as these came about, it would increase demand on statutory services. Short-term savings would result in increased costs in the longer term

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