HISTORIC PRESS RELEASE : Launch of £125M futurebuilders fund consultation [April 2003]

The press release issued by HM Treasury on 30 April 2003.

The Treasury, together with the Compact Working Group, today launched the consultation document on proposals for how to use the new £125 million futurebuilders fund which was announced as part of the 2002 Spending Review.

The futurebuilders fund will assist the voluntary and community sector to deliver public services, developing capacity to deliver in areas such as:

• health and social care;
• crime and social cohesion;
• education and learning;
• support for children and young people.

Representatives of the voluntary and community sector worked more closely with the Government than ever before in drawing up the proposals for the consultation. These include:

• a move from grant funding to longer term investment for the future. A key obstacle to the sector has been the lack of access to capital to invest for future development.
• offering a broader range of finance to include loans, loan guarantees, or a mix of these with grants. Loan finance would enable the fund to go further and have a longer term benefit.
• encouraging organisations to join with others to make the most of other funding streams. Where funding streams already exist, futurebuilders may be able to complement that funding to extend the service to a wider range of users.

Paul Boateng, Chief Secretary to the Treasury said:

“The role of voluntary and community organisations and social enterprises is central to this government’s commitment to delivering world class public services.  Over the last six years, real strides have been made to strengthen the partnership between government and the sector in achieving our shared vision.  But there is a lot more to do to ensure that this partnership works to the best effect.  This new futurebuilders fund will support strategic investment to enable the sector to realise its own ambitions in providing the best services to its users.”

Sir Michael Bichard, Chair of the Compact Working Group said:

“From the very outset, futurebuilders has been an innovative and unique undertaking.  The sector has been in the driving seat in designing the fund, working through the Compact Working Group.  The proposals in this consultation document are the results of the work of the group over recent months.  It is our joint assessment of what is needed and how the fund would work in practice.”