future funding for Leicester Partnership host organisations

22 December 2010

Dear George

I am writing to clarify the position in relation to future funding for the Leicester Partnership Community of Interest Host organisations.

Within the last week, the City Council has received its funding settlement which has as anticipated, resulted in significant cuts to the local financial envelope available to deliver all of our services into the future. Alongside this a number of specific funding grants have been stopped or significantly cut, including the Area Based Grant which will cease to exist from 1st April 2011. This does require some very difficult decisions to be made which have not been taken lightly.

Elected members are committed to protecting front line services. All services are being asked to achieve this as far as practically possible whilst being mindful of the funding stream notifications and restrictions, needs analysis and developing plans in connection with future service priorities.

It has been the Area Based Grant which has been the source of funding for the Leicester Partnership Community of Interest Host organisations. In view of the pressing financial situation and in order to meet our legal obligations, the principles set out under the Leicester Compact and protect the Council's financial position, I writing to formally advise you that the service you currently provided as a host organisation will not be re-commissioned at the end of the current term on the 31st March 2011 when the arrangement between us come to an end, and in particular no further payments for the cost of the services will accrue. You may wish, given this position, to consider the measures you need to take in respect of the organisations you represent and any staff or individuals that may be effected.

The Council recognises that having strong involvement of the Communities of Interest in the work of the Leicester Partnership is important to its continued success. Much time and effort has been invested on the part of the Host organisations themselves, by the previous Chair of the Leicester Partnership, Voluntary Action LeicesterShire and by City Council officers, in establishing this relationship and in developing the role of the Community of Interest Hosts. Whilst the funding may not be available going forward, it would be our intention, as much as is possible, to continue to build on and develop this approach.

Therefore, if beyond March, as a Host organisation you feel able to continue in the absence of funding, this of course would be very much welcomed and my team will do what they reasonably can to support this albeit recognising the constraints on both parties in terms of future capacity and resources. We very much want to seek to do what we can to support a workable approach into the future, albeit with a reduced level of resources ourselves.

It is always difficult to have to stop funding activities and organisations, and take a change of direction, but I hope you can appreciate that in the current financial climate these tough choices have to be made. In writing this letter I have also been particularly mindful of the potential difficulties that the end of any contract can mean for individual organisations and hence our desire to ensure we give you sufficient notice of our decisions.

I would like to take the opportunity to formally thank you for the work you have done to date as a Host organisation for the Leicester Partnership, and will no doubt continue to do during the remaining funding period, and where possible beyond this.

I should be grateful if you would acknowledge receipt of this letter by completing and returning the attached pro-forma.

Your sincerely