Funding news

£3.5 m Futurebuilders fund money used for other funds? - 9 February 2010

Tory spokesman Nick Hurd raises concerns after value of loan fund is £31.3m less than expected.

Shadow charities minister Nick Hurd has accused the Government of being "less than honest" about money from Futurebuilders being used to help fund the third sector recession action plan.

The Government has in the past denied that the value of the Futurebuilders fund, which issues loans to help voluntary organisations win government contracts, was reduced to finance the £40.5m action plan and its Modernisation Funds. However, after the seven-year fund closed for applications two weeks ago, a Cabinet Office spokesman said it was possible that up to £3.5m of action plan money could have come from Futurebuilders.

He said funding allocations not distributed by Futurebuilders, particularly in the earlier years of the programme, had been returned to the Treasury, then partly re-released on application by the Cabinet Office.

The OTS spokesman said the value of the fund fell "short of our aspiration" but added: "This shortfall is nothing to do with the desire to move money into other funds."

  • £215m: The amount of money allocated to the Futurebuilders fund when it was launched in 2004
  • £183.7m: The total amount that will be disbursed by Futurebuilders
  • £3.5m: The amount of action plan money that could have come from Futurebuilders, according to the Cabinet Office.

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