The £125 million fund for the voluntary sector announced by Chancellor Gordon Brown last week will be spent on long-term capital investment and front-line services, sector leaders have been told.
NCVO and ACEVO chief executives Stuart Etherington and Stephen Bubb attended a Downing Street meeting last week with the Chancellor, chief secretary to the Treasury Paul Boateng and voluntary-sector minister Lord Filkin to discuss how the fund will be used. Boateng emphasised the importance of capital investment in the voluntary sector and funding front-line services.
Filkin restated the Government's belief that the sector has a competitive advantage in bidding to run public services.
The Government has not decided whether the fund will be divided among sub-sectors of the voluntary sector, what the geographical spread will be and the balance between larger and smaller organisations. The money will be available from April 2003.