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What does central government think it spends on the voluntary sector?

David Kane
13th May 2011

David KaneToday saw the release of the Government's updated Departmental Business Plans, which show progress against the objectives that government has set itself, and its plans for the coming year.

One interesting part of the plans from my point of view is that departments are required to show how much they have spent on the voluntary sector in the 2009/10 financial year. One of our key research aims is finding out what the government spends on the sector, so this kind of data can help to do that.

Unfortunately, we often find that government doesn't know what it spends on the sector. Charities and other sector organisations are sometimes not separately identified in their accounting systems, and so producing the required data can be difficult. The former Office of the Third Sector, and the Home Office Active Communities Unit before it, attempted to plug this gap with a survey of departments, but even this report contained only partial data (despite the hard work of Ian Mocroft, who compiled the report).

The business plans show that while some departments know what they spend, others don't. I've extracted the data from the business plan PDFs and present it in the table below.

I've (slightly subjectively!) rated each department from Gold to Bronze depending on the quality of the information - departments with no information at all do not make the medals! Let's hope that next year they all meet the gold standard.

DepartmentSpend with VCS
(Contracts)
Grants to VCS 
Cabinet Office7.7234.6Gold
Communities and Local Government78.273.2Gold
HMRC0.22.0Gold
HM Treasury0.30.0Gold
Dept for Education39.7177.5Silver
Dept for International Development35.6594.4Silver
Dept for Work and Pensions305.082.0Silver
Dept for Energy and Climate Changen/a17.1Bronze
Dept for Environment, Food and Rural Affairs16.0n/aBronze
Dept for Transport4.9n/aBronze
Ministry of Defence151.0n/aBronze
Ministry of Justice39.5n/aBronze
Home Officen/a56.9Bronze
Foreign and Commonwealth Officen/an/aDid not medal
Dept for Business, Innovation and Skilsn/an/aDid not medal
Dept for Culture, Media and Sportn/an/aDid not medal
Dept of Healthn/an/aDid not medal

I've put all the data up as a Google spreadsheet, including the notes made to justify not including a figure - so can judge each department for yourself!

Comments

The Government does not commission the work which I used to carry out for what was the Home Office Voluntary and Community Unit, and later the Office of the Third Sector at the Cabinet Office, and, as far as I know, has no intention of doing so in future.  The last report covering the years 2006-07 and 2007-08 was produced but not published.  This is a disappointment, because it ends a series of figures which have been collected on more or less the same terms for nearly twenty-five years.  By contrast, Wales, Scotland and Northern Ireland have continued to collect data on similar terms.  The value of their exercises to the voluntary sector, and the openness which they promote, are indisputable, in my opinion)

As David points out, the exercise which I used to carry out suffered from a number of weaknesses (though I am not certain what he means by “partial”).  The most obvious were its lack of status and authority at the centre of the UK Government machine.  Given the scale of the task, the work was also under-funded, so that one researcher was obliged to handle data on more than £4 billion expenditure across the entire UK.  As a testament to its validity, in 2007, I collated my various estimates and figures for statutory expenditure, and produced a figure which was comparable with the Almanac estimate for statutory income, for 2003-04 (£10 bn). 

David has carried out a valuable exercise in collating the figures on spending on the voluntary sector from departmental plans.  One of the things which it does is to expose the weakness of current Government practice.  David notes variation in the standard of information.  There are figures for grants for only nine departments and contractual spending for eleven, six provided one figure, grants or contracts, but not the other.  Two of the most well-known users of the voluntary sector appeared to offer no information (Department of Health and Department of Culture, Media and Sport).  Of the seventeen departments altogether; the position on their agencies and NDPB’s is not clear (agencies and NDPB’s together spend probably more than half the total of Government spending on the sector).  The seventeen are England, GB or UK departments, and do not include the Wales, Scotland and Northern Ireland devolved governments. 

There does not appear to be any precise relationship between the departments’ published lists of payments to outside bodies and the figures in departmental plans collated by David, and there is no way of knowing how they have produced the figures in the plans..  Experience shows that many civil servants do not know what is and is not “voluntary” or “third” sector.  In 2009, I double-checked an exercise carried out by DEFRA, which had identified several hundred external providers believed to be voluntary or potentially so.  They had identified what they thought was over £70 million expenditure, but this was reduced to about £23 million after I checked their figures and removed profit-makers, statutories and NDPB’s. 

 I have also carried out a brief examination of some of the departments’ published lists of outside spending for 2009-10, in order to see whether I could reconcile those with the figures quoted in the departmental plans and collated by David.  I couldn’t. 

For England, we now have what is possibly the worst of both worlds: a claim that departments are being open, but which produces an odd collection of unverified information, and which cuts across what I used to do for the Government.  As noted above, that exercise suffered from weaknesses, but it did have a degree of unity and consistency, which I think we have lost.

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