A consultation on making the Commission for the Compact a statutory body and the creation of a National Youth Community Service are among the pledges contained in the Labour Party’s 2010 manifesto, released yesterday.

It also states the party’s intention to promote greater public involvement in the way National Lottery proceeds are spent, and promises that money diverted to the Olympics in 2012 will be returned to funding culture, heritage and sport.

Other commitments related to civil society organisations include:

• Giving greater support for the Compact at a local level
• That a National Youth Community Service would aim for all young people to contribute 50 hours to their communities by the age of 19
• Giving major museums and galleries operational independence
• Encouraging the transfer of buildings or land to the ownership or control of voluntary and community groups
• A review of how incentives for philanthropic support can be strengthened
• To “pioneer” social impact bonds, encouraging private investors to support social entrepreneurs and the third sector
• Promoting the creation of social enterprise hubs in every community
• Expansion of community interest companies and third sector mutual organisations via the Co-operative Party, Business Link, enterprise education and Regional Development Agencies
• A fund for community ownership to be created in 2010-11 to support local pubs and social clubs
• Extension of participatory budgeting and greater use of community land trusts to allow local people to purchase and run local amenities and assets such as youth facilities, parks and open spaces
• Confirmation that the Social Investment Bank will be funded via £75m from dormant bank accounts

Reaction

Hannah Terrey, head of policy and public affairs at CAF, welcomed the Labour’s commitment to the independence of the voluntary sector, and said the organisation was interested to hear more detail on the proposed review of incentives to encourage philanthropy to arts organisations.

She added: “However, we are disappointed that Labour has confirmed that £75 million will made available to the proposed social investment wholesale bank from dormant accounts.  

“As we have previously said, this is insufficient to establish a viable and sustainable wholesale investment bank and it needs additional funds from dormant accounts to be workable.”

Stuart Etherington, chief executive of NCVO, welcomed the proposals on the Compact and the transfer of local public buildings but warned that the sector should not lose out when the proportion of National Lottery funding given to the Olympics is reallocated.

Better Banking, a coalition of third sector organisations, welcomed promises to ensure disclosure from banks on the extent they are under-serving communities, for a levy on banks to boost affordable lending by third sector organisations, to clamp down overtly high interest rates charged by non-mainstream lenders, and to introduce a global levy on financial services.

The Community Finance Development Association welcomed the pledge to increase lending to poorer communities by levying the banks.