Funding news

Office for Civil Society cuts £11m from Capacitybuilders, v and the Commission for the Compact - 2 August 2010

The Office for Civil Society will cut £11m from its 2010/11 budget by reducing its funding for Capacitybuilders, the Commission for the Compact and the youth volunteering charity v.

In a statement released today, the OCS confirmed it will cut £5m from v’s match funding budget and £1.95m from its annual grant, which had been set at £39m for the current financial year.

The OCS will also cut its funding to Capacitybuilders by £1.3m and to the Commission for the Compact by £400,000.

It will also save £130,000, used to provide business support for social enterprises, by ceasing its payments to the Regional Development Agencies, which are being axed.

The total reductions, including a further £2m of savings from "unallocated funding", will bring the budget down from £147.9m to £136.9m.

A Capacitybuilders spokeswoman said the cuts would have immediate effect and the organisation would not make any new awards under its Regional Networks Fund or its Social Enterprise Support programme, however committed grants would continue to be paid.

The Commission for the Compact will make the £400,000 savings, which amount to a 20 per cent cut in its budget this year, by reducing spending on marketing and events, which will mean less promotion of the Compact at national and local levels.

Ministers Francis Maude and Nick Hurd have also written an open letter to the sector asking for cost-saving ideas. Further information on the letter can be found on the OCS website. Organisations can respond to the letter at sectorchallenge@cabinet-office.x.gsi.gov.uk.