Funding cuts year after year to council, health and police are leaving services not at the cliff edge, but over the edge. Local Authority and Health Partners are having to make unpalatable choices that impact many services across the city and we are now at the stage in Leeds where the council will have to look at what it can deliver as demand rises for adult social care and children's services and funding continues to decrease.

We are witnessing the dismantling of the public sector and the social fabric of society is being torn apart due to thirteen years of cuts to frontline services at a time when people are experiencing cost of living rises on food,  energy, interest rates, rent increases - there are few households who that are not impacted, with a disproportionate burden falling on the poorest and most vulnerable in society. 

Whilst central government expects local government to passport cuts to the taxpayer to raise funds through Council Tax to bridge the funding gap, private providers of care for Adults and Children continue to generate profit from public money. 

The Third Sector - from large charities to small community organisations - are directly impacted by the challenging environment. We have already had organisations in the city close, leaving a huge gap in services that help and support individuals, families and communities. As Chair of TSL, I am determined that we use our collective voice to speak up for communities and work collaboratively with partners to deal with the impact of cuts against the backdrop of societal changes, widening health inequalities and the climate crisis.

I wish you all a peaceful festive break and a happy new year.
 

Over the last few weeks we have been continuing to work with colleagues in the local authority to offer support to their financially challenging position, whilst advocating for the role and value of the third sector in working with communities across the city. Information that highlighted the scale of the challenge was shared at the recent Third Sector Partnership Group, just days after the Government’s Autumn Statement delivered little reassurance in terms of public spending or the reform of local government funding.  

The Third Sector Commissioning and Collaboration Group met in late November, focusing on the financial challenge and its potential impact on the third sector. It was agreed that the Group will review third sector investment when we have full picture of spend in the city (Council and Health – ICB) in January. It was also agreed that the lead Commissioner in Children and Families will attend Young Lives Leeds in January with a further update of budget proposals around children, young people and families services. In recognition of the scale of the challenge and the need to ensure ongoing dialogue, future meetings of this group will be monthly from January 2024.  

Earlier this week, the Leader of the Council, Cllr James Lewis, and Chief Executive Tom Riordan hosted an update call for partners from all sectors. On this call, partners received an update on some of the key headlines around the financial challenge, as well as an overall summary of the budget proposals which are being considered by the Council’s Executive Board this week.

Key Headlines  

• In-year pressure of more than £35.3m (approx. 5% of the total budget) – increased demand, cost of children looked after (external placements), unfunded pay award, inflation. 

• Projected gap of £58.4m 2024/25; £60.6m 2025/26; and £46.1m 2026/27 – totalling £165.1m. 

• All within context of uncertainty nationally and globally, impacting our communities locally. 

• The city’s fair and inclusive approach is more important than ever. 

• £795m savings delivered by Leeds City Council since 2010. 

• Revenue Support Grant (funding from Government) reduced from 35.6% to 5.5%. 

• The Council expressed a determination to maintain optimism and ambition and be proactive and adaptable, avoiding a Section 114 notice.  
   

Leeds City Council Budget Proposals  

• Proposing wide-ranging changes in our annual budget plans for next year, including:  

• Building closures and sales;  

• New car parking charges;  

• Service reductions;  

• Staff reductions;  

• Price increases 

• Budget consultation will commence this week until mid-January, with decisions in February (at Full Council). 

Whilst Leeds City Council is public in its intention to avoid issuing a section 114 notice, several high profile local authorities have done so over the past few months and more are expected – read more about section 114 notices here.  

Forum Central and Voluntary Action Leeds have recently met to discuss the role each organisation is playing in supporting the sector around the challenging financial environment. Alongside our ongoing infrastructure work and strategic advocacy we are also working jointly on collating resources and practical guidance for groups and organisations – from HR to funding advice - look out for this on both the Forum Central and Doing Good Leeds websites. If there are resources you have found helpful or a particular topic you would like to see covered on these pages, please get in touch and let us know.  

The Leeds Compassionate City Awards recognise the outstanding individuals and organisations who make a difference to their communities. They are an increasingly part of the third sector calendar providing an opportunity to focus on the things people do together to make change. TSL were proud to see so many members hard work recognised at the Compassionate City awards on 7 December, including our own former Chair, Chris Hollins, who was Highly Commended for the Unsung Hero of the Year award.  

Other winners included Leeds City of Sanctuary, who won Diversity Project of the Year, and Welcome Spaces (formerly Warm Spaces), who won Community Project of the Year.

In all of our conversations with partners over the past few months, it’s become clear that the third sector has a role to play and unique perspective on the challenges facing people and communities in the current climate. The TSL Leadership Group have agreed to develop a clear plan for lobbying, campaigning and influencing over the coming months, as we move into an election year. We plan to: 

• Develop overarching messages about the role and value of the sector in the city 

• Set out some key areas of focus on specific policy areas for focus on in the short, medium and long term 

• Work with the relevant networks in the city and our statutory partners in order to develop a set of coherent messages around these areas, using both data and people’s lived experiences 

• Set out a clear plan as to how we will target and communicate these messages locally, and make use of our existing regional and national links (through our links with organisations like Locality and NAVCA, and the links organisations have to their local MPs).  

The Leadership Group agreed that these messages should reinforce our concern that the last decade + of austerity coupled with the pandemic has damaged the fabric of our society, exacerbating inequalities and impacting on the most vulnerable within our communities. Several key areas for lobbying have been agreed on so far: 

• Household Support Fund and the current uncertainty as to whether this fund will continue beyond 31 March 2024 – and the direct impact this will have on people and communities across the city 

• The impact of Home Office decisions on vulnerable people in Leeds, and on the organisations and services that support them 

• Importance of community infrastructure (including social housing) in improving people’s quality of life, and in easing pressure on statutory/emergency services 

• Preventing private businesses profiting from public money (e.g. through controlling the cost of adult and children’s social care placements) 

If you have areas that you would like to see TSL focus on as part of this work, or have comments on any of the areas highlighted above, please get in touch and let us know.  

TSL has been working to ensure that the third sector has an opportunity to benefit from UKSPF investment in the city since the fund replaced previous European funding. As a new funding regime, it has not been without its challenges, with local funds impacted by decisions and delays at Government level.  

Find out more about Pillar 3 of UK Shared Prosperity Fund here, which has three different lots currently open for bids relating to 'People and Skills'. 

TSL have been involved in meetings and discussions over the past couple of weeks to understand the bidding landscape and advocate for third sector involvement. Here’s what we know so far: 

• Call 1 – Knaresborough-based Better Connect are heading up a third sector bid across West Yorkshire – find out more about their approach here. Several local authorities – including Leeds – are considering putting in bids for discreet programmes of work. In Leeds there is a desire to work with the third sector but ongoing discussions about how to achieve this.  

• Call 2 – Groundwork have signalled their intention to bid for this call, building on their previous experience of delivering ESF grant programmes. TSL and several infrastructure partners across West Yorkshire have signalled their support for Groundwork (Local authorities are understood to not be bidding for this work).  

• Call 3 – the five Local Authorities across West Yorkshire will be bidding for this work, with no opportunity for the involvement of third sector partners.  

The TSL Leadership Group have agreed to focus on seeking to ensure opportunities for third sector partners are realised, both during the current bidding process and post-award. There is also learning around this pillar and the previous experience of UKSPF in the city, which we will seek to share via Chair Kim Groves and her role in the UKSPF Impact and Influence Group.  

• Commissioning and funding
• Partnerships
• Social value