Prime Minister Gordon Brown used the launch of his new book Britain’s Everyday Heroes to outline his vision for the future of the third sector, and to highlight proposals laid out in the new Third Sector Review.

Speaking before a gathering of sector representatives at the Methodist Central Hall in Westminster on 24 July, Brown allayed concerns that government attention is focused entirely on public service delivery. He provided a veritable onslaught of key areas which he saw as priorities for the sector and government. This began with an increase in small grants for local projects, promising £50 million allocated on a match-funded basis; on top of the £80 million set aside in the last budget.

He said government was currently consulting on how to improve take-up on Gift Aid, and that it was now a priority to examine how a Social Investment Bank would provide more secure and sustainable funding to the sector – but there was no mention of the bank being funded by unclaimed assets, as has been mooted by the Commission on Unclaimed Assets.

He announced the creation of a new Council on Social Action to be led by David Robinson, co-founder of Community Links, to advise government, as well as support for the development of an annual global forum on social leadership.

He said government would be working with the Charity Commission to explore ways of enabling voluntary organisations to campaign without compromising their charitable status. He also promised £117 million to youth charity V, and a revamp of the honours system to recognise and celebrate the contribution of local people making a difference in their own communities.

The Third Sector Review itself provided an even more comprehensive policy statement (see below).

Commenting on Brown’s speech, Stephen Bubb, Acevo’s chief executive said: “The Prime Minister has sent a clear signal of his strong belief in the power and potential of the sector to achieve social change... The Prime Minister backed by a strong Ministerial team has made clear his determination to push forward the conclusions of the Third Sector Review.”

Commenting on the Review, NCVO’s chief executive Stuart Etherington said: “[the Review] demonstrates a significant shift in the government’s approach to the voluntary and community sector. The report shows a much deeper understanding of the sector, not simply focusing on the sector’s role in service delivery, but recognising the need for a more holistic outlook, which values our independence.”

Terry Ryall, chief executive of V said: “More investment in volunteering is fantastic news for our communities” while Megan Pacey, director of policy and campaigns at the Institute of Fundraising said: “As a matter of priority, [we] would urge that government ensures the development of fundraising skills is at the heart of any new third sector skills strategy, so as to ensure the growth and sustainability of the sector in years to come.”

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Third Sector Review at a glance:

- a new £50 million endowment match fund for local independent foundations, building on the £80 million small grants programme announced in the 2007 Budget

- at least £10 million new investment in community anchor organisations and community asset and enterprise development building

- £117 million of new resources for youth volunteering, building on the work of V

- over £85 million of new investment for infrastructure development through Capacitybuilders

- £5 million for a new national research centre

- building capacity to improve public services, through Futurebuilders, training for commissioners and work to build the evidence-base on opportunities for the third sector

- additional investment to raise awareness of social enterprise

- better mechanisms to drive best practice in funding, with three year funding becoming the norm

- a new third sector skills strategy

- a continued focus on the Compact to build and improve the sector’s relationship with government

The Directory of Social Change has expressed mixed views on the Review. It said that while it was good there was an emphasis on the importance of campaigning and a strong focus on research and building an evidence base, there was little focus on the cross-cutting role of the Office of the Third Sector and an imbalance between the focus on public service delivery and support for the majority of the sector.

It also said the review was punctuated with irrelevant, erroneous and confusing evidence, a lack of clarification around what constitutes social enterprise, and no reference to the use of existing support networks.