Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 27, 2025

Purpose:

Content: RESOLVED:   1.  Extending the current multiyear grants (2024-25) as set out in Appendix 1 until 31 October 2025 using grant programme reserves of £301,193, as VCS funding from the new redesigned grants programme will not commence until November 2025 subject to Cabinet approval in June, was agreed. This includes:   ·  Funding for advice services that was due to run for three years from 2023- 2026 will now end five months early on 31 October 2025 in order for the new redesigned VCS grants programme to be implemented to run from November 2025.   ·  Community Infrastructure grants that are due to end in March 2025 be extended to 31 October 2025 as funding through the redesigned grants programme that organisations could potentially apply for will not be in place until November 2025.   ·  Funding for Specialist Grants extended until 31 October as funding through the redesigned grants programme that organisations could potentially apply for will not be in place until November 2025.   2.  One year funding for Adventure Playgrounds and the associated infrastructure support totalling £288,566.00 was agreed.   3.  Incorporating the annual Lunch Clubs budget of £203,800 into the VCS Grants Programme and associated redesign from October 2025 when the current arrangements with existing Lunch Clubs expire, was agreed.   4.  Setting aside £158,000 of the remaining grant programme budget reserves for any additional grant funding needed to aid the transition to the new financial envelope and manage risks as they emerge, and delegating authority to approve the use of these to the Director of Corporate Strategy & Transformation in consultation with the Cabinet Member for Health, Adult Social Care, Voluntary Sector and the Deputy Cabinet Member for Strengthening Neighbourhoods, were agreed.   5.  It was noted that as a result of the budget reduction to the grants programme and the need to extend funding to those organisations in multi-year arrangements there will be no one year project grant funding for VCS organisations in 2025/26.   6.  Contributing to the London borough’s grant scheme administered by London Councils 2025/26 was agreed, and it was noted that the contribution will be £197,521. This is budgeted for separately and is not included in the grants budget outlined below.   REASONS FOR DECISION   Cabinet is asked to agree the funding levels, timetable and details of the Hackney Voluntary and Community Sector Grants programme for the first seven months of 2025/26 as a key decision of the Council as it affects two or more wards and is related to Council spend. Details of organisations and levels of funding can be found in Appendix 1.   VCS Grants programme spend April 2025 to October 2025   Funding stream Amount for 7 months Advice Services £623,992 Community Infrastructure £268,538 Specialist Grants £227,792 Adventure Playgrounds £168,330 Lunch clubs £118,883 TOTAL £1,407,534   VCS Grants Budget 2025/26   A Annual programme budget available after savings reduction £1,896,586 B Seven month budget April to October 2025 £1,106,342 C Budget to fund planned grant extensions April to October 2025 £1,407,534 D Budget needed from grant programme reserves = B-C £301,193   The Council is having to reduce the VCS grants programme by £820,000 from 2025/26. In order to make the most effective use of the remaining budget the Council is refreshing the VCS Strategy in order to inform the redesign of the grants programme. The time tabling of this has meant that it has not been possible to launch a redesigned programme that would commence delivery in  April 2025. The current timetable plans to launch the redesigned grants programme in July with implementation of grants from October.   Cabinet is being asked to extend grants rather than leave organisations currently in multi year delivery arrangements without a grant or the opportunity to apply for a new one. The budget of £301,193 to extend these will come from the reserve that has been integrated into the grants programme budget over the years in order to respond to unanticipated crises such as the Pandemic.   The extension allows services to our most vulnerable and disadvantaged residents to continue whilst the new programme is put in place. It also provides an opportunity for those organisations currently in multi-year funding arrangements to consider and put in place measures to mitigate against the loss or reduction in grant from the Council. The reduction of the budget for the programme and the use of the existing reserves does mean that it will be very difficult to hold reserves for any future unforeseen events.   Cabinet is also being asked to delegate use of a small amount of grant programme reserves of £158,000, to provide some contingency for risks that may emerge over the coming months that could impact the implementation of the new grants programme. For example, the Council could not have foreseen the temporary closure of applications for funding for one year that was announced by City Bridge Foundation in September. As the second largest provider of grants to the VCS in Hackney this is likely to present new funding challenges for local organisations.   The extensive engagement undertaken over two years to inform the current VCS Strategy ensured that it has remained relevant. However, the context has changed considerably as our communities have been through a pandemic, we are still in a cost of living crisis and both the VCS and local government are faced with unprecedented financial challenges. The new ways of working between VCS organisations and the Council developed during the pandemic have enabled officers to continue to learn about the opportunities and challenges for the VCS in their work supporting communities. This has all provided a rich understanding and insight to inform the refresh of the VCS Strategy.   We have tested and reflected back to the VCS the relevance of the current strategy and what has been learnt over the past four years. Ten open invite, online events were undertaken in the autumn. These have provided an opportunity for VCS partners to challenge the Council’s understanding of the issues and potential solutions to the five headline themes set out in the current strategy, as well as fill any gaps in our knowledge. In addition, sessions have been held for the Charedi VCS and organisations led by and for Black and Global Majority communities. A series of open invite sessions were also held in December to enable VCS partners to raise issues and/or solutions that may have not been identified in any of the key themes and for general discussion.   Further in-person engagement sessions are planned with the sector over the coming months that will include open invite meetings as well as those that will follow a social research approach to ensure balance. These sessions will provide an opportunity for the VCS and Council staff to reflect on and develop the principles for the design of the new grants programme. These design principles will be informed by the emerging VCS Strategy refresh and also reflect the Council’s learning from the new Equality Plan and Transformation Programme. The aim is to have completed the refreshed VCS Strategy and a redesign of the grants programme by the summer in order to present these to the Council’s Cabinet in June.   DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED   Given the budgetary pressures facing the Council the future of the VCS Grants Programme has had to be reviewed. Consideration has been given to the reductions in public spending through welfare cuts and reduced grants to local government which can lead to increased demands upon the VCS. The unique position of the VCS to respond to the needs of the most vulnerable and disadvantaged residents as well as its ability to deliver added value e.g. through inward investment and volunteering necessitates a grant programme that ensures that the sector can continue to thrive and build resilience to mitigate the impacts of the pandemic and in the face of further budget reductions.