Government cuts £11m social enterprise funding
Despite the government’s rhetoric on big society, it has announced £11 million of spending cuts to the department responsible for social enterprise.
The Office for Civil Society has had its 2010/11 budget cut to £136.9 million, down from £147.9 million.
Nick Hurd, minister for civil society, said: “Every area of government is looking at reducing costs and streamlining its work. The Office for Civil Society is no exception.”
The £11 million cuts include £1.95 million to be taken from youth charity v’s £39 million grant, and £1.3 million from charity support service Capacitybuilders.
Business support for social enterprises will also be reduced.
Peter Holbrook, chief executive of the Social Enterprise Coalition, criticised the government for undermining its professed desire to expand social enterprise.
“We have repeatedly heard from government that it wants to open up more opportunities for social enterprises and the reality is that scaling up the social enterprise sector will take time, resource and investment,” Holbrook said.
Many of the cuts will hit organisations that “play an integral role in reaching social enterprises at a grassroots level,” he added.