HC Deb 18 October 1990 vol 177 cc897-9W
Mr, Gill

To ask the Secretary of State for the Home Department what arrangements he has made for the future administration of grant to ethnic minorities under section 11 of the Local Government Act 1966.

Mr. Waddington

I have today issued the new arrangements for section 11 grant following the consideration of the responses received to the consultation document published on 14 March this year. The grant will in future be administered under both the Local Government Act 1966 and by means of a grant to be newly established and known as ethnic minority grant (EMG). The new arrangements will come into effect from April 1992.

Copies have been placed in the Library.

It is important that the considerable contribution that our ethnic minorities make to the life and work of this country is fully recognised. The new arrangements will focus grant on supporting the Government's prime objectives to break down barriers experienced by members of the ethnic minorities. They are designed, in advance of legislative change, to ensure that the areas of greatest need are identified—both in the local authority and voluntary sectors. The grant will in future not be open ended and the continuing need for it will have to be shown. Workable proposals with identifiable objectives set, monitored and evaluated will be a means to ensure those ethnic minorities can take a full and active part in the life of this country.

There will be greater scope to pursue a larger number and wider range of more innovative projects; in particular by the increased involvement of the voluntary sector. This will be achieved by requiring local authorities to identify suitable voluntary sector projects for the placement of local authority staff and at the same time by specifically devoting a proportion of the grant directly to the voluntary sector through the new training and enterprise councils (TECs).

The TECs are becoming firmly established and by the time the new grant arrangements come into effect they will largely cover the whole country. Voluntary sector organisations, in particular those from the non-Commonwealth areas that have previously been unable to apply for such funds, will be able to make application for the new ethnic minority grant through the TECs.

The Government recognise that legislation will be required for fundamental reform of section 11, but believe that much can be done in advance to improve the administration of the grant.

The response to the consultation process from local authorities, the voluntary sector and individuals was considerable and the Government are grateful for the scale and scope of the comments made on their proposals. Where possible, comments and suggestions have been incorporated in the new arrangements. In response to specific requests from both local authorities and the voluntary sector it was announced on 5 September that the start date for the new arrangements would be deferred until 1 April 1992. This has allowed more time for the consideration of the comments and suggestions made. The grant has been subject to an overall cash limit (as recommended by the scrutiny report) since 1 April 1990; the other main changes in the funding arrangements set out in the draft circular are: the emphasis of the grant in future will be on practical projects working to identified needs, such as a lack of English language or low achievement in schools, and local authorities will in future bid for funding for projects to be judged against such specific criteria; all projects will therefore have to fall within the new criteria for grant as laid down in the statement of policy which accompanies the circular; all projects will have to be regularly monitored and reviewed against recognisable performance targets; in advance of formal legislative change arrangements are being made for some section 11 funding to be redirected to innovative projects that tackle ethnic minority need, to be sponsored by the new training and enterprise councils (TECs), with task forces and city action teams in suport; local authorities will need to work closely with voluntary organisations and identify a proportion of projects for the voluntary sector; new administrative arrangements will come into effect on 1 April 1992. Bids for funding will be invited on an annual basis to a fixed timetable.

The new arrangements will allow for wider and more innovative proposals, but existing projects will still be able to continue if they are brought within the new criteria. To increase effectiveness, all projects, whether local authority or voluntary sector based, will need to set clear objectives for achievement. They will on the one hand encourage, in advance of legislative change, the take-up of grant by the widest range of ethnic minority groups while on the other ensure that those seeking grant do not become wholly dependent on such funding. By this means I believe we shall enable more people to gain better access to all mainstream services and to thereby become full and effective members of our society.