NAVCA, the membership body for local infrastructure organisations, has warned government reforms to councils could hurt charities by disrupting funding, partnerships and commissioning arrangements.
In a blog this week, the body said plans to implement regional strategic authorities, with two-tier local government systems becoming unitary authorities by 2028, could “marginalise local voluntary action” and damage key relationships, such as with health services.
“As decisions move to a higher level, strategies will be needed to maintain community influence and rebuild relationships,” it said. “With local government already under financial pressure, there is a real risk of funding cuts and disruptions to procurement.”
New local government structures
Shortly before Christmas, the government published its English Devolution white paper setting out plans to shake up the structure of local government.
These include building on the existing but not universal combined authority model, prevalent in city regions, by implementing new strategic authorities that bring together a number of council areas.
“We will facilitate a programme of local government reorganisation for two-tier areas, and for unitary councils where there is evidence of failure or where their size or boundaries may be hindering their ability to deliver sustainable and high-quality public services,” the paper added.
New unitary authorities would be responsible for populations of at least 500,000 people.
The plans have drawn mixed responses so far, with two-tier areas expected to submit interim proposals relating to the reforms before the end of March.
‘Major shifts’ ahead
In the face of the rapid timetable, NAVCA warned in its blog that voluntary, community and social enterprise (VCSE) organisations “must prepare for major shifts in governance and geography, especially if they are used to working with district or county councils”.
The VCSE sector plays a role in all seven areas of responsibility that the new strategic authorities will take on, it noted. These are transport and local infrastructure; skills and employment support; housing and strategic planning; economic development and regeneration; environment and climate change; health, wellbeing and public service reform; and public safety.
“Strong partnerships can enhance impact across these areas, ensuring local knowledge and expertise shape decision-making,” it said. “Without VCSE involvement, local government risks weaker connections to communities and missed opportunities for meaningful change.”
NAVCA said it will be working to identify risks and opportunities under the new system, and to influence central and local government as the changes unfold. It is doing so in partnership with ACRE, which acts as an umbrella body for rural charities, as well as other partners.
A spokesperson told Civil Society that the time, effort and resources needed to remake relationships, redesign services and recommission contracts were all potential negative factors. On the positive side there will be openings for the VCSE sector to “step into the strategic space” and be a key partner for new authorities, they said.
NAVCA said the organisation and its partners will offer leadership for, and advocacy on behalf of, the VCSE sector, and would facilitate relationship-building at unitary and strategic level. “We will mitigate the risks of further funding reductions associated with new budgets and commissioning arrangements,” it added.
‘We need meaningful engagement’
Maddy Desforges, NAVCA’s chief executive, said local government is “going through fundamental change to be fit for the decade of renewal, which is needed for communities to thrive”.
She added: “Local infrastructure organisations (LIOs) and the voluntary sector are central to strengthening, rather than weakening, communities and public services.
“NAVCA is working closely with government and partners to ensure LIOs and the VCSE sector are at the heart of these changes,” Desforges said. “We need sustainable funding, strong partnerships, and meaningful engagement to make sure communities continue to thrive.”
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