The Committee received and noted a report that provided an update on the Main Stream Grants Programme.  The Committee heard that the 2012-15 MSG programme continued the same funding streams as the previous 2009-12 programme. It was heard that a more in depth development of the new programme was required. In addition, a number of issues and weaknesses the Committee heard been identified across the current 11 funding streams. These included an imbalance in the spread of provision across wards. In some funding streams resources had been spread too thinly across too many projects; this affects their viability and the quality and impacts of services delivered. In many of the funding streams services are fragmented with a lack of integration and cross-referral between projects.

The Committee noted that Tower Hamlets has an extensive and diverse Third Sector. That plays a key role in the delivery of the Tower Hamlets Community Plan and in improving the lives of all those living and working in the Borough. The sector is diverse with a broad range of organisations types, approaches and skills. Whilst the sector also faces many challenges it can be effectively mobilised to make a significant contribution to the corporate goals of the Council.

The Committee heard that MSG is a useful funding mechanism for deploying Third Sector organisations to support the delivery of the Council’s key priorities. The funding can be effectively targeted toward specialist service providers in order to meet clearly articulated community needs and grant agreements can be negotiated with successful service providers to maximise the potential achievement of targeted outputs and outcomes.

The Committee heard that for clarity is should be understood that MSG is a ‘commissioned grant’ process where desired service outcomes and other requirements are clearly specified within what is effectively a ‘tender document’. Grants are treated as ‘restricted funds’ within an organisation’s accounts and can therefore only be spent on the funded activity.

The main points of the discussion may be summarised as follows:

1. The Committee was concerned that there should be adequate provision to ensure access to jobs;
2. The Committee wanted to see services being provided that are ambitious and address those who are in greatest need;
3. The Committee wanted to see a more dynamic and transformational jobs programme that would have a realistic opportunity of getting residents back into work;
4. The Committee heard that the greatest challenge is working with those furthest from the employment market and the Third Sector have a good record of success in delivering such programmes;
5. The Committee heard that LBTH has a process in place to ensure that those organisations in receipt of main stream grants are fit for purpose and they have been subject to the necessary robust checks prior to the signing of any contracts.

As a result of consideration of this report the Chair Moved and it was:-

RESOLVED that:

the Committee should receive details with regards to the number of organisations in receipt of MSG where any questions have been raised regarding their financial health and stability.