Survey supports crucial role for Futurebuilders (27/01/2005)

18.04.2006

Research conducted by Futurebuilders, the £125 million Home Office-backed investment fund for the voluntary and community sector (VCS), has shown that public sector purchasers want to make better use of the VCS in delivering local services, but struggle to build the necessary working relationships.
 
Futurebuilders carried out a snapshot survey across health providers, social services and other local government functions. Most respondents (80%) felt there was a lot of potential for developing the role of the VCS in public service delivery. However, nearly two thirds of purchasers (67%) said financial, policy or structural constraints affected their ability to draw up contracts with them.
 
The survey also highlighted the scale of the challenge Futurebuilders and its investees face in relation to purchasers adopting full cost recovery principles when negotiating contracts with the VCS. Only 3% of respondents said that their funding agreements with the VCS covered loan repayments and interest, whilst training costs were covered by only 60% of respondents and start-up costs by 50%. 
 
The findings strongly support the view that Futurebuilders has a crucial role to play in developing the relationship between public service providers and voluntary and community organisations, providing business support and guidance as well as providing new ways of finance.
 
On a positive note respondents said they saw the voluntary and community organisations as better able to connect with hard-to-reach groups in the community and benefiting from closer links with local service users.
 
Richard Gutch, Chief Executive of Futurebuilders, says: “Public sector purchasers are becoming increasingly aware of the positive impact that both the VCS and Futurebuilders can have on the delivery of public services.
 
“However, the research highlighted the scale of the task ahead. Many respondents felt that the sector’s lack of experience was one of the main barriers to successful tendering. Empowering the VCS to compete effectively in the marketplace is a key aim of Futurebuilders and one of our biggest challenges ahead.”