Acevo members sceptical about full cost targets

Mathew Little

Sector leaders do not believe the Government will meet its April 2006 target for ensuring that all statutory funders adopt full cost recovery, according to a survey by Acevo.

The Treasury's 2002 cross-cutting review on charities and public services promised that, by April this year, all public sector funders would practise full cost recovery in their contracts with charities.

But according to a poll of 151 Acevo members, 97 per cent did not believe this would happen. The chief executives body has launched a campaign to hold the Government to account over the issue.

Stephen Bubb, chief executive of Acevo, said: "Members don't believe the April deadline will be achieved. They wonder what the point is of the Government making promises it won't keep?"

Acevo members said that the principle of full cost recovery had not filtered down to commissioners of services in local authorities, with many believing that the third sector has "some magic pot of money to cover central costs".

The Treasury said the Government was "committed to the principle of full cost recovery".

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