Milburn: let charities run public services
May 6, 2004
Author: Tash Shifrin
Source: Guardian
Available: http://society.guardian.co.uk/charitymanagement/story/0,8150,1210908,00.html
Former health secretary Alan Milburn this afternoon called for voluntary sector organisations to be given the right to bid to run public services when they are contracted out, saying the sector offers "a new third way".
Mr Milburn, a leading Blairite understood to have a key role in drawing up Labour's plans for a third term, told a conference of charity leaders in central London today: "The government's reform agenda heralds a potentially greater role for the voluntary sector - and there is political commitment to making it happen."
He set the new role of the voluntary sector in the context of the government's large-scale handover of public services to the private sector, stressing the need for "greater diversity in provision". Mr Milburn told delegates at the conference, organised by the Association of Chief Executives of Voluntary Organisations (Acevo): "In local government, more services are now provided by the private sector. In social services, care for the elderly is now dominated by private providers. In education, the private sector now has a foot in the door in delivering school and local education authority services.
"In health, the concordat I signed as health secretary with the private sector has increased usage of independent sector hospitals to treat NHS patients. New providers from overseas are now also being introduced."
In a speech littered with references to the "next decade" and the "new era" he set out a vision for Labour's future public services policy. "In this next period we need to move beyond an automatic assumption that the only alternative to the public sector is the private sector," he said.
"The voluntary sector provides a new third way. Over this next decade it should become as integral to public service delivery in Britain as either the public or private sectors."
He called on the government to give the voluntary sector new rights to encourage local public sector bodies to create a "level playing field" between private sector and voluntary providers.
"First, where the running of a public service is to be let, the voluntary sector should in future have an automatic right to bid alongside public and private sector organisations," he said.
Second, he urged, "every government department should be asked to develop
a concordat with the voluntary sector to parallel the concordat I signed
as health secretary with the private sector", setting out where the voluntary
sector could best make a contribution to the delivery of public services.
He also called for a taskforce including the voluntary sector, central
and local government and the NHS to examine areas where charities could
bring their strengths to bear.
Mr Milburn urged a "drive to bring the voluntary sector in from the cold", tackling the "vicious cycle" of tentative, short-term contracts that prevented charities delivering services.
But he stressed that the new agenda "cannot be about the voluntary sector replacing the public sector". Instead it should be about "forging a new partnership between them for reform".
Echoing a call he made last November for "a voluntary sector equivalent to the private finance initiative - VFI alongside PFI", he backed calls for longer-term contracts for public service delivery by charities, similar to those drawn up with private firms.
They were often forced to "spend time and energy chasing dozens of short-term
funding streams, rather than investing in staff development and service
improvement". Local homelessness projects and drug treatment centres could
be forced to close down just as they were starting to make an impact, he
added.
"Too many charities do excellent, important work but can't get the
stable funding that would allow them to develop and expand their services."
At the same time government agencies were nervous of contracting with
charities that lacked the capacity to deliver, "micromanaging the relationship"
in ways that in fact hindered capacity development in the sector.
Mr Milburn's keynote speech echoed the conference theme of "sure funding" for voluntary organisations delivering public services. The idea has been strongly pushed by Acevo, which has set up a commission of inquiry, chaired by the chief executive of the National Consumer Council, Ed Mayo, to look at models for long-term contracting between public and voluntary sectors.
But the extent to which charities and community groups should get involved
with public service delivery has been contentious. Mr Milburn's speech
provoked the National Council for Voluntary Organisations to warn that
it was dangerous for voluntary organisations to attempt to "replace the
state" in public service provision.
The NCVO's public policy director, Campbell Robb, said: "The voluntary
sector has a unique ability to involve users and communities, utilising
its specialist skills and experience to secure a better deal for its beneficiaries.
However, it is vital that voluntary organisations only enter into partnerships
with government when there is clear evidence that it will directly contribute
to meeting their users' needs.
"Talk of new initiatives that will enable the wholesale handover of
large sections of services to the voluntary sector is dangerous."
He added: "It represents a fundamental misunderstanding of the principal
reason why the sector welcomes the current government's efforts to lift
the barriers to more service delivery by voluntary organisations. Namely,
that it will provide opportunities for some, working in specialist areas,
to widen their impact on the communities they exist to help - not fill
gaps in service provision or replace the state."
Mr Milburn, who as health secretary introduced foundation hospitals, also sought to identify a greater role for the voluntary sector with the government's policies of reform and localism.
"I would like to see government at all levels focus more explicitly on helping local communities run things themselves," he said. "More direct elections to the boards of local services could take place, building on the NHS Foundation hospital model we have put in place."
He stressed the strengths of the voluntary sector - its flexibility,
personalised approach, roots in the community and "above all else, its
local character".
"Where government can sometimes be remote, the voluntary sector tends
to be more sensitive to the specific needs of both individuals and communities,"
he said.