The Localism Bill put before Parliament yesterday will "remove barriers" for the sector, if the right assistance is provided, the Social Investment Business' chief executive, Jonathan Lewis has said.
Heralded by Communities and Local Government Secretary Eric Pickles as the document that "lays the foundations for Big Society", the Bill moves to decentralise powers, shifting responsibility from central government to local authorities via a "general power of competence" clause which will allow local authorities to do anything that is not specifically prohibited by law.
But it also introduces measures which could give charities the opportunity to buy local assets and properties (such as shops or libraries) and to challenge and take over services.
The "community right to challenge" clause would offer voluntary and community groups, as well as social enterprises and local authority employees, the right to express interest in providing a service, even if it is already being run by another party. Local authorities will be obliged to give such challenges proper consideration,
Jonathan Lewis (pictured), said: "This Bill will remove barriers and give local authorities greater opportunity to commission services from local voluntary groups, charities and social enterprises.
"Civil society organisations, working hard in their communities, are really good at both designing and delivering services that are tailored to local people’s needs and can be realised within tight budgets."
But, he warned that "the right kind of support - both investment and advice" would be necessary for the sector to benefit from changes under the Bill.
This was echoed by the Development Trusts Association which said the sector will need support to translate the proposed new rights into action.
Etherington - local Compacts needed
Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations (NCVO), welcomed the Bill as "another important part of the jigsaw for the voluntary and community sector". In particular he praised both the "community right to buy" and the "community right to challenge" measures saying they will "give people a greater say in how things are run at local level".
"Community assets, both buildings and land, can play a key role in strengthening communities, as a focus for community life and a resource to support local enterprise," he said.
But Etherington too had reservations, warning that the passage of the Bill would need to be paved with the implementation of "appropriate mechanisms", in particular local Compacts, to protect the sector when relationships between local government and communities don't work out.
Paul Emery, head of community and social organisations at Zurich Municipal added that without proper planning to avert risk, volunteers would be reluctant to step in to the breach.
"Only a quarter of people we spoke to in our recent Tough Choices report agreed that individuals should have more responsibility for delivering local public services, whereas half believe it should remain the council’s job," he said.
"What we do know is that it’s highly unlikely that more people will come forward to run services, set up their own schools or volunteer with a local charity if they think that there will be some personal risk to them. It is vital then that communities are armed with the right protection and guidance to take on more direct local service delivery."
The date of the second reading of the Bill is yet to be announced.
