Fund core costs or risk service failure, warns Acevo chief

The Government's plans for an expansion of charities' role in public services will be wrecked unless it deals with the financial and leadership deficit of third-sector organisations, Acevo's chief executive Stephen Bubb will warn tomorrow (13 June).

Speaking at Acevo's summer conference, Bubb will say: "The Government's drive to expand service delivery will come unstuck unless it corrects the financial and leadership imbalance between us and the public sector.

There is a deficit in the funding arrangement for service provision. Third-sector organisations are expected to pick up the tab for core costs. This is an unstable arrangement and will collapse unless corrected."

Bubb will also urge the Government to finance the leadership development of voluntary-sector managers to the same extent they support public-sector leaders.

The Treasury's review of the sector's involvement in public sector, expected to address the issue of core costs, will be published in the summer.

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