£178 billion. Got it? £178 billion? Remember that number. £178 billion. The UK government has a £178 billion hole in its fiscal bucket. Or to be a bit more brutal about it you, me and all the other taxpayers, domiciled and non-domiciled, between us need to borrow that much if the government is to continue to spend at current levels.
Of course the government cannot go on borrowing and borrowing. Simply because lenders won’t keep pouring good money after bad. Every voter knows spending will have to be cut and taxes go up. Every voter hopes that the spending cuts will fall on areas they don’t benefit from and the taxes go up that they don’t pay. (I’m rooting for more on tobacco and bankers’ bonuses).
Presumably this is why Stuart Etherington says: “With…the pressure on public spending, the voluntary sector is bracing itself for further, deeper cuts”. Given the significant increase in the importance of payment by government to voluntary organisations for provision of services over the last two decades, he is right to be concerned.
What is more worrying is that the NCVO quarterly Charity Forecast Survey seems to show that a number of other charity leaders don’t get it. 77% believe that economic conditions in the voluntary sector will be negative in 2010 but 41% plan to increase spending. UK unemployment is projected to rise to 2.8 million by the autumn but 27% plan to increase staff numbers in the next three months. Completely potty!
Politicians won’t face up to the deficit till May 7th because they don’t want to panic the voters. Voluntary sector leaders have no such excuse. £178 billion, taxpayers remember that number. £178 billion, voluntary sector leaders remember that number.
Peter is an associate director at Corporate Citizenship.
Charities will lag behind the rest of the UK economy in recovering from the recession, with the full impact of funding cuts yet to hit, according to a survey of charity leaders. The National Council for Voluntary Organisations’ (NCVO) quarterly Charity Forecast Survey, released on December 7, shows 77% of respondents believe economic conditions within the voluntary sector will be negative for the next year. Stuart Etherington, chief executive of NCVO, said: “With donations already much reduced and the pressure on public spending, the voluntary sector is bracing itself for further, deeper cuts. “Fortunately, the vast majority of charities say they will maintain or even expand services proving they are able to adapt to the recession and prepare for what lies ahead. Their determination and commitment to the people they serve should be applauded and I encourage everyone to support their favourite causes in any way they can.”
With rising unemployment and fewer job vacancies, the current financial crisis has seen renewed policy emphasis in both Europe and the UK on volunteering as a route to employment, according to a new report from the Economic and Social Research Council (ESRC), released on December 14. ‘The Value of Volunteering’ – which features contributions from academics, representatives from the UK government, third sector organisations and volunteers – outlines fresh UK government initiatives to use volunteering to help people into jobs, and offers powerful examples of how volunteering can change people’s lives for the better. It also calls for more effective use of European Social Fund to incentivise providers to offer voluntary activity as a pathway to integration especially for groups furthest from the labour market.
Volunteers’ Charter to strengthen ties between paid staff and volunteers.
The TUC and Volunteering England signed a Charter on December 7 which sets out a series of principles for employers to follow to encourage a good working relationship between volunteers, employers and paid staff. The Charter includes principles which specify that all volunteering is undertaken by choice, and all individuals should have the right to volunteer, or not to volunteer. The Charter also outlines how the involvement of volunteers should complement and supplement the work of paid staff, and should not be used to displace paid staff or undercut their pay and conditions of service. The Charter recognises the value that the UK’s 22 million volunteers make to the economy and wider society, which is estimated to be worth £23 billion every year. The TUC is publishing new guidance to accompany the Volunteers Charter, which explains that while volunteers are not entitled to the same rights as an employee – such as the minimum wage, holiday and sickness pay – they should still receive some form of agreement from the organisation they are volunteering with.
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