Third sector to be given right to challenge councils over service provision

The Localism Bill will contain a “powerful” new right for voluntary and community groups to challenge local authorities to consider alternative ways of running services, the Decentralisation Minister said yesterday.

In a speech to SOLACE’s annual conference, Greg Clark called on councils to strengthen their ties with the third sector, arguing that there was a greater need in the current economic climate for the “diversity, innovation and cost savings” such groups can offer.

The minister praised in particular the voluntary sector’s contribution in education, tackling worklessness, the environment and social care. He said the new right of contestability would give groups the chance to offer a better alternative.

Central government was not giving power to councils to then see it recentralised locally through a monopoly of local public services with voluntary and community groups – including charities, social enterprises, co-ops and housing trusts – pushed out, he added.

Clark said: "The spending review will inevitably present councils with some tough choices in the town hall, but councils must resist any temptation to pull the drawbridge up on the voluntary sector. We expect councils to devolve and empower people and maintain strong links with voluntary and community groups.

"Right now in a tight economic climate there is a greater need for the diversity and innovation voluntary and community groups can offer. Reinforcing monopolies of local services by retrenching into the town hall is not the way forward. Opening up more of councils' budgets to have it carried out by voluntary organisations can improve effectiveness, increase resilience and save costs."