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Community rights to challenge and bid – too good to be true?

‘Community right to challenge supply’ and ‘community right to bid to own community resources’ are terms that government and many in the voluntary and community sector hope will be increasingly heard over the next few years. They are enshrined in legislation in the localism act, and represent some of the few remaining traces of the government’s ‘Big Society’ agenda.

In theory, both offer significant opportunities to community and voluntary organisations to play a greater role as service providers and community anchors.

In practice, however, these great ideas may prove problematical. Unless the public sector and local government in particular agree local protocols and ‘rules of engagement’ they could at best prove very complicated and bureaucratic – and at worst, turn out to be a poisoned chalice for many small community organisations.

My fear is of the temptation to use the introduction and promotion of these new ‘rights’ for the voluntary and community sector as camouflage for budget cuts and/or the withdrawal of public funding to the voluntary and community sector (VCS).

Indeed, there is a serious risk that the policies being adopted will drive a wedge between local government and the VCS.  This would be a disaster – not least for disadvantaged communities and neighbourhoods across the country.

At a time of austerity and growing social disadvantage, inequality and unemployment – there is an urgent need for local government, the wider public sector, local businesses and the voluntary sector to find common cause.

For example, neighbourhood community budgets should be seen as a chance to build a new set of relations between the voluntary sector and local authorities and their partners. They can involve the transfer of power and resources from the town hall, the police, the NHS, DWP and others to communities.  They can embrace all community resources and capacity, including those in the formal and informal community sectors and local business.

The community rights to challenge supply and to bid to own community assets can augment this approach. However, this will only be the case if local authorities are willing to develop constructive relations and approaches with the local voluntary sector.  In particular, local authorities must avoid over-elaborate systems that discourage or simply prevent the community based voluntary organisations from responding.

Accordingly, my advice to local authorities is:

  • in two tier areas, aim to align county and district council approaches
  • involve and seek to align the policies and practices of all other public sector agencies
  • engage the local voluntary sector and in particular, the local community voluntary councils and similar representative bodies in the development of all policies and procedures in these areas
  • agree sensible and practical protocols with the voluntary on how these policies will be implemented
  • ensure that the community right to challenge supply is integral to strategic commissioning
  • ensure that procurement processes do not undermine the rights and opportunities for the voluntary sector
  • devolve responsibility for community neighbourhood budgets to those neighbourhoods and the local voluntary sector
  • offer financial and other support to communities to enable them to build capacity, as well as the local voluntary sector to enable it to play a constructive role in these processes whilst safeguarding the voluntary sector’s independence; and to build the commercial capacity of the sector to play a realistic role in the community challenge process
  • as far as possible, use their procurement muscle to secure local voluntary sector provision
  • ensure that commissioning, procurement and grant aid focus on outcomes and thus enables the sector to be innovative and responsive whilst retaining its vital independence
  • adopt and promote a clear narrative on the local authority’s commitment and vision for working with the local voluntary sector, local businesses and local people to take advantage of the localism agenda for local benefit
  • recognise and promote the virtues  and values of public service ethos,  good employment practice, and community empowerment

For its part, the voluntary and community sector has to understand the risks as well as the opportunities associated with both of these new ‘rights’.  If challenging the supply of a service only leads to a procurement process that the challenger does not win; or leads to a breakdown in relations between the challenger and public sector commissioners; or the challenger takes on liabilities that it cannot sustain – then these ‘rights’ will turn out to be ‘a wolf dressed in sheep’s clothing’.

If there is to be any chance of the sector harnessing these rights to good effect, then risk management and commercial skills/nous will be essential, as will the ability and willingness of trustees and senior managers to test with honesty and ‘eyes wide open’ whether an ‘opportunity’ to challenge and potential success in such a challenge will add to an organisation’s mission and sustainability.  In particular, they will need to understand the costs and opportunity cost of challenging and the potential impact for their beneficiaries.

They will need to have access to capital funding, especially if they are considering buying a community asset or creating the capacity to challenge and manage a service.  The government and others, including Big Society Capital, have to ensure that social investment is available on realistic terms to small community organisations. In turn, these organisations will need to be confident that they can manage loans and their contracts

Community organisations should expect to be able to secure advice and support from their local collective and ‘infrastructure’ groups such as councils of voluntary service, which in turn should expect guidance and advice from their national bodies.

The ‘community right to challenge supply’ and ‘community right to bid to own community resources ’could be powerful tools in the voluntary sector’s tool bag and offer real opportunities for communities and neighbourhoods but they must not be allowed to become distractions from the vital core mission of building community capacity, and empowering citizens.

John Tizard
John Tizard is an independent strategic advisor and commentator on public policy and services. He is a former council leader and was director of the Centre for Public Service Partnerships.

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Matthew
Matthew
11 years ago

Great blog John. Agree with all of this. I believe that the community rights are also a massive risk for local government in these current economic times. the last thing officers want is a swathe of challenges. They don’t have the capacity to deal with it. Instead it is about having a better understanding of the voluntary and community sectors and their potential service delivery capabilities and a maturer commissioning relationship. That way there should be no real need for organisations to challenge.

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