Caroline Slocock explains why she thinks the sector needs to stand up for its independence in the light of recent government policies.

Will the Budget include another Tampon Tax Fund, a new grant to boost the voluntary sector?  If so, look to the small print.  The Chancellor did not say when he announced that initiative that work to influence government policy would not be eligible.  A few months later and the Cabinet Office made a similar exclusion for all government grants. I doubt this is the end of the story.

Why should ministers think that it is wrong for taxpayers to fund charities to engage in policy-making? The government currently funds civil society to raise its independent voice abroad and is proud of it, though that may also be at risk from this new rule. Last month, the Secretary of State for International Development said, "I don’t think we will have the sort of step-change on social mobility we need here in the UK, without that kind of coordinated advocacy and campaigning from civil society". Without funding, many will lack capacity.

As voluntary voices are silenced, the voice of business remains strong. Indeed, Sarah Wollaston MP, the chair of the Commons Health Committee, warned the ‘no advocacy’ clause in grants would have serious consequences for public health and that the "balance [of lobbying] is already distorted in favour of industry".

David Cameron, back in 2010, spoke against "secret corporate lobbying…. money buying power, power fishing for money and a cosy club at the top making decisions in their own interest" and said "We can’t go on like this."  But Part 1 of the so-called Lobbying Act requires only lobbying companies, not businesses that lobby directly, to register contact with ministers and senior civil servants. Part 2, however, which appeared at the last minute, has "had a negative impact on charities and campaign groups speaking out on legitimate issues ahead of the election," according to the independent Commission on Civil Society and Democratic Engagement.  

It all started imperceptibly. As services were contracted out, successive governments began to treat the voluntary sector like an arm of the state. ‘Gagging clauses’ then appeared in some contracts.  In 2012, the Department for Communities and Local Government suggested local authorities stop funding ‘fake charities’ that lobby government, citing a report from the Institute of Economic Affairs which claimed governments were funding ‘sock puppet’ charities to argue for more government. 

This report also appeared in announcements in 2015 and 2016 extending a ‘no advocacy’ clause first to all DCLG grants and then across the whole of government. The IEA refuses to disclose its funding but is allegedly supported by the tobacco industry and the chair of the IEA is reported to have given donations to the Cabinet Office Minister who announced the recent change. Who then is the sock puppet?

Logic suggests the ‘no advocacy’ ban will soon be applied to all government contracts, too.  This is already the case for some contracts in the refugee and women’s services sectors.  And  ‘no advocacy’ clauses are just one of the threats to the existence of a vibrant, independent voluntary sector, as documented in a report published by Civil Exchange yesterday, Independence in Question: the voluntary sector in 2016,  which concludes the independence of the sector is at a five year low. 

Weakening the voluntary sector makes no sense for a modern democracy where it’s important that different voices are heard, and diverse services thrive. It’s particularly important when services and benefits are undergoing such major restructuring.  And this is a government committed in principle to community empowerment, which is devolving more powers to local level where grass root input will be essential.

The voluntary sector is increasingly being characterised as a vested interest. Sadly, it has been weakened by self inflicted wounds – aggressive fundraising, for example - and there’s evidence to suggest that some big charities have become too commercial.   

It’s time for the voluntary sector collectively to stand up for the distinctive value of independent voluntary action in society as a force for good and for every charity to demonstrate they remain true to their charitable purpose in everything they do.  Good governments and strong democracies need an independent and vibrant civil society and we lose it at all our peril.

Caroline Slocock is the director of Civil Exchange and principal author of Independence in Question: the voluntary sector in 2016