Funding news

Conservative – Liberal Democrat Coalition Deal Document - 12 May 2010

The two parties have released an initial document which sets out ‘the issues that needed to be resolved…to work together as a strong and stable government.’ It will be followed in due course by a full coalition agreement, covering the full range of policy

The clauses are very brief and little detail is available at this point. However, a number could be particularly relevant to the voluntary sector:

  • A significantly accelerated reduction in the structural deficit over the course of a parliament, with the main burden of deficit reduction borne by reduced spending rather than increased taxes.
  • The parties agree that modest cuts of £6bn to non-frontline services can be made within the financial year 2010-11, subject to advice from the Treasury and the Bank of England.
  • The parties agree that a full spending review should be held, reporting this autumn, following a fully consultative process involving all tiers of government and the private sector. 
  • A banking levy will be introduced with a detailed agreement on implementation.
  • An end to detention of children for immigration purposes.
  • The parties will promote the radical devolution of power and greater financial autonomy to local government and community groups. This will include a full review of local government finance.
  • The parties agree to end all existing welfare-to-work programmes and to create a single welfare-to-work programme to help all unemployed people get back into work.
  • The parties agree to realign contracts with welfare-to-work service providers to reflect more closely the results they achieve in getting people back into work.
  • An agreement to promote the reform of schools in order to ensure:
    • that new providers can enter the state school system in response to parental demand.
  •  The parties agree to implement a full programme of measures to fulfil their joint ambitions for a low carbon and eco-friendly economy, including: [among other measures:]
    • the creation of a green investment bank
    • measures to promote green spaces and wildlife corridors in order to halt the loss of habitats and restore biodiversity.

For more detail see the BBC website, for the full coalition deal click here.