The government published (following consultation) a Dormant Bank and Building Society Accounts Bill. The Bill provided for the reinvestment of money from unclaimed assets in dormant bank accounts in the wider community. Money would be distributed via the Big Lottery Fund to youth services, and to financial capability and inclusion programmes.
Source: Dormant Bank and Building Society Accounts Bill [HL], HM Treasury, TSO
Links: Text of Bill | Explanatory notes | HMT press release | CPAG press release | BBC report
Date: 2007-Nov
The government responded to a report by a committee of MPs on unclaimed assets in the financial system. The government remained committed to designing a scheme that preserved the rights of the individual consumer and at the same time allowed genuinely dormant accounts to be used for good causes in the community, such as improving youth services.
Source: Unclaimed Assets Within the Financial System: Government Response to the Committee's Eleventh Report, Eighth Special Report (Session 2006-07), HC 1028, House of Commons Treasury Select Committee, TSO (0870 600 5522)
Links: Response | MPs report
Date: 2007-Oct
A report said that grant aid was a vital part of the local funding mix for community organizations, and remained essential for thriving local communities.
Source: Sustaining Grants: Why local grant aid is vital for a healthy voluntary and community sector and thriving local communities, National Association for Voluntary and Community Action (0114 278 6636)
Date: 2007-Sep
An audit report said that charities delivering social care and other public services were being hampered by overly complex public funding arrangements, which might deter them from bidding for public funds and prevent them influencing the design of services.
Source: Public Funding of Large National Charities, National Audit Office (020 7798 7400)
Links: Report | NAO press release | Leonard Cheshire press release | PSLA press release | Community Care report
Date: 2007-Aug
A report by a committee of MPs said that the government should use millions of pounds lying in dormant National Savings accounts – in addition to compulsorily using those in commercial banks – to help fund youth centres and other good causes.
Source: Unclaimed Assets Within the Financial System, Eleventh Report (Session 2006-07), HC 533, House of Commons Treasury Select Committee, TSO (0870 600 5522)
Links: Report | BBA press release | NCC press release | NCVO press release | Guardian report | BBC report
Date: 2007-Aug
A report examined how financial support should best be provided to local voluntary and community organizations. Small community organizations played a crucial role in local areas through their contribution to social capital, community cohesion, empowerment, and a range of economic benefits. But they generally found it hard to secure resources; they had lost out relative to larger voluntary organizations in recent years, both in terms of public donations and public contracts. Although some new sources of support had emerged, these were often confusing and erratic.
Source: Louisa Thomson and Julie Caulier-Grice, Improving Small Scale Grant Funding for Local Voluntary and Community Organisations, Young Foundation (020 8980 6263)
Links: Report
Date: 2007-Jul
The government announced that it planned to introduce an Unclaimed Assets Bill. The Bill would be designed to use unclaimed assets in the banking system (such as bank accounts dormant for 15 years) to fund improvements in youth and community facilities.
Source: The Governance of Britain: The Government?s Draft Legislative Programme, Cm 7175, Leader of the House of Commons, TSO (0870 600 5522)
Date: 2007-Jul
An article examined the idea of 'grant dependency' in the voluntary and community sector.
Source: Rob Macmillan, 'Understanding the idea of "grant dependency" in the voluntary and community sector', People, Place & Policy, Volume 1 Issue 1
Links: Article
Date: 2007-Jul
A report examined the grant-funding relationship between local government and the local voluntary and community sector. It focused on four local authorities that demonstrated good practice in grant-making.
Source: Sally Cooke, Why Grants Are Important for a Healthy Local VCS: A study of four local authorities? policies, National Association for Voluntary and Community Action (0114 278 6636)
Links: Report | NAVCA press release
Date: 2007-Jul
An audit report examined the progress made by central government departments in ensuring that, by April 2006, third sector organizations were fully paid for the services they delivered on behalf of the public funder. A significant proportion of third sector organizations did not consider that they were receiving full cost recovery, even though the target date had passed. Few departments had made significant practical changes to funding practice in response to the target.
Source: Implementation of Full Cost Recovery, National Audit Office (020 7798 7400)
Links: Report | NAO press release | Regeneration & Renewal report
Date: 2007-Jun
The government began consultation on proposals for the distribution of unclaimed assets held by financial institutions. It proposed using the Big Lottery Fund to distribute the assets, which would be reinvested in the community to fund youth services, financial capability and inclusion, and social investment.
Source: Unclaimed Assets Distribution Mechanism: A consultation, HM Treasury (020 7270 4558)
Links: Consultation document | HMT press release | Regeneration & Renewal report | Inside Housing report
Date: 2007-May
The 2007 Budget report proposed a 2 percentage point cut in basic income tax rates (from 2008-09), from 22 per cent to 20 per cent - with the effect that the Treasury would only refund 25p for every pound donated to charity by a basic rate taxpayer under the gift aid scheme, rather than 28p. Charities estimated that the sector could lose income of at least £70 million each year.
Source: Budget 2007: Building Britain's long-term future - Prosperity and fairness for families, Cm 342, HM Treasury, TSO (0870 600 5522)
Links: Budget Report | Summary | Hansard | HMT press release (1) | HMT press release (2) | FT report
Date: 2007-Mar
A report looked at ways of improving second-tier support for 'frontline' groups in the voluntary and community sector. Many of these groups needed infrastructure support ? in areas such as governance, finance, human resources, and campaigning ? to assist them to provide their services as efficiently and effectively as possible.
Source: Alison Harker and Steven Burkeman, Building Blocks: Developing second-tier support for frontline groups, City Parochial Foundation (020 7606 6145)
Links: Report
Date: 2007-Jan