Agenda item

·       Alasdair Ross in relation to item 8.2

The Committee had before it a deputation by Mr Alasdair Ross, on behalf of Aberdeen Council of Voluntary Organisations (ACVO) in relation to item 8.2 (Medium Term Financial Strategy for the Council’s General Fund, 2024). (Article 7 of this minute refers).

Mr Ross provided background information regarding ACVO and advised that discussions had been held with its member organisations to formulate a response on their behalf.

He advised that during Phase 1, third sector organisations across the city were encouraged to contribute directly to the engagement work undertaken by the Council, and to ensure that their staff, volunteers, customers and service users also took part in the consultation activities and that their members intended contributing further during Phase 2 of the consultation.

He indicated that once again the Council should be applauded for its commitment to early engagement on its budget and that this year had seen significant improvements to the online interface and in the availability of open public sessions where people had been able to give their views. He advised that they recognised the complexities of such an exercise and whilst there would always be improvements that could be made, they believe other public bodies should be following this good example of early engagement.

He intimated that their members recognised the financial position the Council finds itself in more than anyone, because their sector was permanently at the bottom of the funding pile. He explained that they had been asked to respond on the sector’s behalf at this early stage in the process to present some broad areas of consideration.

Mr Ross advised that the following questions were posed to decision makers and budget holders by their members:-

·       Who should pay for services that support our communities?;

·       What would our city be like without a strong third sector?; and

·       Was it realistic to expect more for less?

Mr Ross outlined the key areas of focus, which were:-

(1)      Sustainability of the sector -

(a)    Budget cuts had a direct impact on the ability of third sector organisations to deliver essential services, leading to reduced capacity, increased waiting lists, and compromised quality of care;

(b)    Inadequate funding made it challenging to retain skilled staff, who were often lured away by higher-paying roles in other sectors;

(c)    The sector strived to maintain fair work practices, including living wages and no-zero hour contracts. However, these standards had become increasingly difficult to uphold in the face of funding cuts.

(2)      Early Intervention and Prevention -

(a)    The third sector agreed on the importance of prevention and early intervention as a cost effective strategy for addressing social issues;

(b)    A balance had to be struck because immediate demand remained high and a response was required.

(3)      Community-Led Solutions -

(a)    Third sector organisations possess valuable local knowledge and expertise that could inform policy decisions and service delivery. The sector played a vital role in engaging communities, fostering social cohesion, and promoting resilience; and

(b)    Not all communities had the capacity or resources to identify and build solutions to the issues they face. Investment in community development was required.

(4)      Funding Models -

(a)    More flexible funding models that allowed for adaptation to changing needs and circumstances would enhance the sustainability of third sector organisations; and

(b)    Long-term investment in the third sector as a strategic partner could yield long-term benefits for the city, including improved outcomes for residents and reduced reliance on public services.

Mr Ross outlined the recommendations, as follows:-

(1)      Uncomfortable and serious whole-system discussions between the Council, other public agencies and the third sector were required to prevent catastrophic loss of services. A long term strategy for funding and supporting the third sector was needed, recognising its vital role in addressing social challenges;

(2)      The sector was asking that their work was valued, both in terms of respect for the work we do, but valued financially for the impact it had. Charity was not free.

(3)      Involve the third sector in the decision-making process, not just in the consultation process, to ensure that their needs were built into the outcomes. Organisations who may be affected by proposals should be offered a direct line into the process so that a very clear picture of impact could be understood by the Council in detail.

(4)      Acknowledgment that communities could not replace public services or mitigate their loss without the financial resources to do so.

(5)      Cuts and service reductions that impact vulnerable communities should not be considered. It was a false economy and would drive even more demand to their stretched and underfunded third sector services.

In conclusion Mr Ross advised that their member organisations understood, more than most, the financial situation that the Council finds itself in because it reflected the economic situation of their own sector over decades. He intimated that the message from the third sector to the Council was not one of “us and them” – it was that they were one city striving for the same thing.  He explained that “We are you, and you are us” was a direct quote from one of their members talking about the decisions that Aberdeen City Council face.

Mr Ross responded to questions from members of the Committee.

The Committee resolved:-

to note the deputation and to thank Mr Alasdair Ross for his contribution and attendance.