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Comprehensive Spending Review

The Comprehensive Spending Review settlement 

The conclusion of the Comprehensive Spending Review (CSR), published on 9 October 2007, confirms the resources available to the Office of the Third Sector to implement the policy programmes originally set out in the third sector review. It also outlines how the third sector contributes to the delivery of key priority outcomes through the new Public Service Agreement (PSA) framework.

The third sector review, published in July 2007, put forward a new strategy for building the Government's relationship with the third sector. The review focused on supporting the environment for a healthy third sector, enabling voice and campaigning, strengthening communities, transforming public services, and encouraging social enterprise.

Over the period of the spending review (2008-11), the Office of the Third Sector will invest over £515 million in third sector programmes, including:

• an £80 million small grants programme for community action and voice (announced in the 2007 Budget)
• a £50 million local endowment match fund, which will enable local independent foundations to develop community endowments to provide sustainability in future grant making
• £117 million of new resources available for youth volunteering, through the organisation v (the Government will also continue to match private sector contributions to v)
• over £85 million for Capacitybuilders, for third sector infrastructure development
• up to £65 million for Futurebuilders, bringing the total projected value of all loans, grants and loan guarantees under the management of the fund to £215 million by 2011

The Public Service Agreement framework

Alongside the work of the Office of the Third Sector, the third sector review also set out how Government departments will take forward work with the third sector over the years of the Comprehensive Spending Review. Building on these commitments, the new Public Service Agreement framework highlights the contribution of the third sector in the delivery of key priority outcomes across Government.

There is a new Public Service Agreement aiming to build more cohesive, empowered and active communities. The delivery agreement recognises the critical role of the third sector in strengthening communities and includes an indicator to measure a thriving third sector, focusing on levels of formal volunteering and the number of people employed by the sector.

The contribution of the third sector to the delivery of outcomes is also reflected across the majority of delivery agreements, particularly in the Government's aims to:

• narrow the gap in achivement between children from lower income and disadvantaged backgrounds and their peers
• raise the educational achievement of all children and young people
• increase the proportion of socially excluded adults in settled accommodation and employment, education or training
• halve the number of children in poverty by 2010, on the way to eradicating child poverty by 2020
• increase the number of young people entering adulthood on the path to success
• promote greater independence and well-being in later life
• increase equality of opportunity, irrespective of age, disability, race, belief or sexual orientation

In addition, the departmental strategic objectives of the Cabinet Office highlight the role of the Office of the Third Sector in supporting the environment for the third sector to thrive.

Further details

• HM Treasury webpage on the Comprehensive Spending Review 2007