Decision details

To consider a report of the Cabinet Member for Efficiency and Improvement seeking approval for the details of the new grant awards process including a timetable for applications and decisions.

On 12 March 2012 Cabinet agreed an ‘in principle’ move to an outcome-based commissioned grants model for awarding grants to voluntary organisations from 2013/14.  Cabinet approval is now being sought on the details of the new grant awards process including a timetable for applications and decisions.

(i)  To approve the process for the outcome-based Commissioned Grants Programme, including the key changes as set out in paragraph 6.

(ii)  To approve the list of outcomes grants are to be awarded against as set out in paragraphs 7-15.

(iii)  To approve that where appropriate, the council award longer term (2 or 3 year) grants from the grants to voluntary organisations budget from 2013/14, as set out in paragraphs 16-18.  These grants would take the form of 2 or 3 year funding agreements that would be subject to annual review in line with budget approvals.

(iv)  To approve in principle that a proportion of the grants to voluntary organisations budget is used for one-off, one year grants awarded against the same criteria and outcomes as the longer term grants, as set out in paragraph 19-20.

(v)  To propose a budget of £4,977,756 over three years (2013/14 to 2015/16) for grants to voluntary organisations, as set out in paragraph 21, subject to approval by Full Council at the annual Budget Setting meeting in February of each year.  Of this £1,777,345 would be the proposed budget in 2013/14. 

(vi)  To propose a tapered reduction of 6.8% each year for 2014/15 and 2015/16 as set out in paragraph 22, subject to approval by Full Council at the relevant annual Budget Setting meeting in February of each year.

(vii)  To approve that formal notice is given to existing grant recipients highlighting that any applications for grant funding for 2013/14 and beyond will be considered without reference to previous grants and their current funding relationship with the council will end on 31 March 2013, as set out in paragraphs 24-29.

(viii)  To agree amendments to the standard grant criteria as set out in paragraph 30.

(ix)  To discontinue the previous tapered reduction plan for Shopmobility to bring them in line with the new process, as set out in paragraph 31.

(x)  To note that the Dedicated Schools Grant contribution in the grants to voluntary organisations budget will be re-allocated to schools in April 2013 following the changes brought in by central government and therefore this funding will no longer be available, as set out in paragraph 32.

(xi)  To approve in principle the pooling of the council’s Community Chest budget with the NHS Health and Wellbeing grants budget and to explore alternative options for administration of the scheme, subject to consultation with community groups and the Trade Unions, as set out in paragraphs 33-39.

(xii)  To delegate authority to the Director of Environment and Economy, following consultation with the Cabinet Member for Efficiency and Improvement, to implement changes to the Community Chest scheme following the consultation with community groups and the Trade Unions

(xiii)  To delegate authority to the Director of Environment and Economy, following consultation with the Cabinet Member for Efficiency and Improvement, to do anything necessary to give effect to the recommendations contained in this report.

The recommendations detailed in this report will ensure that the council continues to have a fair, transparent and open grants process with informed long term strategic decision making in place to award grants to the voluntary and community sector.  It ensures that existing grant recipients are given adequate notice of changes in the council’s approach which could potentially impact the outcome of future applications for grant aid.  The council’s changed approach will ensure that council grants meet needs and strategic priorities, achieve best value for the residents of the city and provide greater access and stability for the voluntary and community sector in Southampton.

1. Delaying giving formal notice to existing grant recipients that their funding would end until after the decisions are made in January 2013 was considered and rejected.  Due to the need to give reasonable notice of the end of funding there would be a cost implication for the 2013/14 budget which would reduce the funding available for new grants.  Furthermore, it may create a perception that existing grant recipients who are successful under the outcome-based Commissioned Grants Programme received preferential treatment. 
2. Continuing to manage the Community Chest scheme in house was considered and rejected as the council is currently exploring alternative ways of sharing and delivering services.  The arrangements for pooling budgets suggested in this report offer an opportunity to consider a different way of administering this scheme.  This combined with the need to respond to new policy initiatives such as the ‘localism’ agenda is leading to more efficient ways of working, making the time right to give the voluntary sector the opportunity to take this on.