How will a Hung Parliament affect the Third Sector?

After 96 hours of horse trading and negotiations, the Conservatives and Liberal Democrats finally came together to form a coalition government. As the parties assign posts and priorities, what are the implications for the charitable and voluntary sector?

Some have suggested that a hung parliament could benefit the sector as charities may find it easier to shape and influence public policy. However, with an emergency budget due within 50 days, programmes for 2010-2011 still hang in the balance for many. Businesses, local authorities, and charities are finding it difficult to make long term decisions.

The success of any coalition government will largely rest on the degree of agreement between the parties forming the coalition. Francis Maude is the newly appointed Minister for the Cabinet Office, and Nick Hurd has just been confirmed as the new Charities Minister. We also know Nick and Jenny Wilmott (Conservative and Liberal Third Sector spokespeople respsctively) seem to broadly agree on the need to reform the administration of Gift Aid, set up a Social Investment Bank, and open up the delivery of services to the voluntary sector. Of course, the sector will need to use its persuasive powers across the political sphere, since Labour could yet be in a strong position at the time of the next election and that could be sooner that the five year fived term being proposed.

The National Council for Voluntary Organisations (NVCO) has invited third sector leaders to a summit to consider the impact of the new coalition Government on charities. This is widely anticipated to discuss how the Third Sector leads the way within David Cameron’s ‘Big Society’ vision for the UK.

This could be a new dawn for the Third Sector. On the surface there seems a broad consensus in working towards the same outcomes – the difference in opinions seems to be who has the best ideas to deliver them in timely fashion for the good of the sector.

Priya Shah, Consultant, Linstock Communications
http://www.linstockcommunications.com/