The ‘third sector’, encompassing non-governmental, non-profit and values-driven organisations has long been the poor relation to the private and public sectors – despite its importance to the national economy and to people’s health and wellbeing. Now however, it will have a seat at the top table if Labour wins the election.
In its election manifesto, the party has pledged that a Starmer government will work in partnership with the sector on a range of issues, including protecting the environment, creating stronger action on animal welfare and Labour’s plans for growing the economy.
This commitment goes further in pledging to involve voluntary and community (VCS) organisations in the business of government than any political party has promised previously.
Leaders seek to emphasise third sector role in social change
VCS leaders have welcomed the promise – with caveats.
Sue Tibballs, CEO of the Sheila McKechnie Foundation, said: “There is much to welcome in Labour’s manifesto including some measures to strengthen our democracy. But we would have liked to see some recognition of the role our sector plays in driving reform not just providing services. We will continue to push for this in our ongoing conversations.”
Clare Mills, deputy CEO of the Charity Finance Group, said: “It is particularly positive there is specific recognition that civil society has a key role to play in helping to build a stronger economy.
“However, there is little detail on how Labour would work to develop their relationship with civil society to ensure that our sector’s expertise and connections across all communities could contribute to social change.”
Jane Ide, chief executive of ACEVO, said: “Nurturing and developing the partnership between government and the voluntary sector will unlock the talent, expertise and innovation that is embedded in our communities.
“We want all parties to grasp the opportunity to work with the sector to forge a new and innovative relationship that helps to build a fair and thriving society.”
Third sector: key engine for renewal
In making the commitment, Keir Starmer is honouring the promise he made to the third sector in a speech in January 2024. He said then:
“For too long, your voice has been ignored. Our door is open. We will welcome anyone who wants to make our national life better to take their place at the table to shape the future with us.
“The relationship between government and civil society needs a reset” adding that he wanted to implement an action plan on how a future Labour government “would work with civil society for a society of service”.
“We don’t want to crowd out the social entrepreneurs. We want to encourage them. We want to harness civil society as one of the three key engines for renewal, working alongside the public and private sectors.”
At the same event, the shadow civil society minister Lilian Greenwood said she aimed to develop a civil society mission action plan that harnessed the sector’s energy and expertise and unlock its potential to bring change to your communities.
“We want to work with you to develop a new strategy, and for civil society to be part of developing what that partnership looks and feels like. We have to make sure that is embedded across all departments so that everyone sees civil society as important in delivering our mission.”
A new vision and a new direction
VCS leaders responded enthusiastically to Starmer’s speech.
Ide said: “Our sector can do so much that the public and private sectors can’t: our position of trust in communities is key to achieving change and our voice in campaigning is needed to deliver effective public policy.
“We are ready to work in partnership with a future Labour government, if that is the outcome of the next election, and to bring the unique, invaluable expertise within our sector to bear in enabling the people we are here to serve to thrive.”
Matt Whittaker, CEO of Pro Bono Economics, said Starmer “rightly acknowledged that the sector has been ignored for too long by policymakers, amid the competing demands of the state and business”.
“Importantly, this new vision also recognises the ‘essential’ role the sector has to play in the country’s economic regeneration.”
He added: “It is vital that the government which comes to power following the next general election introduces concrete policies designed to help the sector unleash its full potential.”
NCVO chief executive Sarah Vibert said: “It feels like the relationship between the sector and Labour is headed in the right direction.”
Current government pledges ‘unambitious’
The Conservatives have pledged to complete a gift aid review and work with charities to “unleash” philanthropy.
“The Government has the power to leverage philanthropy for good causes and cultural institutions. We will work with individuals, businesses, charities and other networks to find opportunities to unleash this even further. We will complete the review within the next Parliament.”
Richard Bray, chair of the Charity Tax Group, welcomed the commitment but said “the timetable is disappointingly unambitious. Gift aid provides vital support to charities and we hope that this review will proceed as soon as possible. It will help unlock a further £500mn in gift aid at a time when the sector needs as much support as possible.”
The third sector had a total income of £88bn in 2022-23, contributed £18bn to the UK economy in 2020-21 and employed nearly one million people.
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