HC Deb 29 January 2002 vol 379 cc291-3W
Andrew Selous

To ask the Secretary of State for the Home Department (1) what assessment has been made by the Government of the cost to the taxpayer of operating the(a) Community Resource Fund and (b) neighbourhood renewal community chests; [29920]

(2) if he will make a statement on the Community Resource Fund; and how much money has been distributed through the fund to voluntary and community organisations; [29923]

(3) what assessment has been made by the Government of the administrative requirements on voluntary and community organisations applying to the Community Resource Fund. [29921]

Angela Eagle

[holding answer 24 January 2002]: The Community Resource Fund was launched in 1999 as a three-year pilot small grants fund, with the purpose of making grants of between £50 and £500 to support community activity in areas of serious deprivation. This was a direct response to recommendation 20 in the Policy Action Team 9 report, on community self-help, where it was recognised that small sums of money with simple application procedures and a rapid response could have a substantial beneficial effect on local groups.

The fund has been managed for the Active Community Unit (ACU) by the Community Development Foundation (CDF) and the Community Foundation Network CFN, and individual grants have been administered by local community foundations in 30 deprived neighbourhoods.

The total grant made to the Community Development Foundation CDF in 1999–2000 and 2000–01 was £338,000, of which £308,000 was paid in small grants to local community groups, and £30,000 was allocated to cover operating costs. In the current year, it has been agreed to make a grant to CDF of £168,000, of which £72,000 will be distributed to local community groups, approximately £7,000 will be allocated in direct operating costs, and approximately £69,000 has been allocated to a research project into the alternative approaches to involving local residents in decision-making on small grants.

The cost of operating the Community Resource Fund over three years will have been £42,000, plus a small allocation of staff time within the ACU.

The application process for the Community Resource Fund was designed to be as simple as possible, drawing on the extensive experience of the two voluntary organisations managing the fund. Some improvements to lighten the administrative requirements on applicants were made as a result of the evaluation of year one of the Fund.

The cost of operating the neighbourhood renewal community chests at local level will not exceed £7.5 million (out of a total allocation of £50 million, of which a maximum of £5 million (10 per cent.) will be spent on administration, and £2.5 million (5 per cent.) on outreach and development support. Some further cost will be incurred by staff in the neighbourhood renewal unit, and the Government offices for the regions, particularly on setting up the programme, but it is not possible to arrive at an accurate figure at short notice.

Andrew Selous

To ask the Secretary of State for the Home Department how many applications have been made to the Community Resource Fund; and how many of these were successful. [29922]

Angela Eagle

[holding answer 24 January 2002]: The number of applications made to the Community Resource Fund is 815 for years one and two. This equates to 426 in year one and 389 in year two. Out of these applications, 305 were granted in year one, and 254 were granted in year two. The average grant was £450. The Fund has been managed for the active community unit by the Community Development Foundation and the Community Foundation Network and individual grants have been administered by local community foundations in 30 deprived neighbourhoods.