How civil society partnership can deliver the new government's agenda
Bonny Downs Community Association, in London, has been helping their local area since 1998
The government’s ambition to put more power in the hands of local communities will depend on the strength of civil society. Indeed, as Jack Wakefield, Head of Policy at Social Investment Business, shows, investment in civil society will be vital for the government to deliver its commitment to tackle the country's most pressing challenges head on.
“We all have charities in our constituencies that are doing the most amazing work” said Andy Burnham as he set out the 'Direction of Government' during his first day in the Commons as Prime Minister. He continued, “My agenda is all about putting power in the hands of people at the community level, so that they can drive changes that are right for them.”
Civil society is critical in the shift towards greater local control and decision making in public services. Since entering office, ministers have rightly recognised that voluntary, community, faith, charity and social enterprise organisations (VCSEs) have the expertise, local knowledge and trusted relationships needed to tackle some of the country’s most pressing social challenges. As the government pursues devolution and greater public power, it is right that VCSEs are seen as central to these ambitions. They strengthen communities, foster belonging and provide vital neighbourhood services, often remaining when others have withdrawn.
Investing in the buildings from which these organisations operate is therefore critical to delivering the government’s ambitions. These community assets are essential infrastructure, yet many face high energy costs and poor energy efficiency. The Warm Homes Fund presents an opportunity to address this, helping community buildings become warmer, more efficient and more financially sustainable, strengthening the places and public services communities depend on.
Locally led change
The sector's greatest strength lies in its deep roots within local communities. Government research found that more than 75 per cent of VCSE organisations deliver services in the communities where they are based, giving them an unrivalled understanding of local needs, and challenges. This close connection enables them to respond quickly, tailor services to local circumstances and engage people who might otherwise fall through the cracks of traditional provision.
As a result, VCSE organisations play a vital role in supporting some of the most vulnerable people in society. Across homelessness, employability, health and social care, disability support and countless other areas, they provide trusted services that are rooted in lived experience and long-standing community relationships.
Evidence clearly shows that investing in community organisations can generate significant returns for both society and the economy, too. Research by Social Investment Business on the Futurebuilders Fund found a clear relationship between investment in voluntary organisations and improved local outcomes. Areas receiving over £3 million of investment recorded Gross Value Added (GVA) levels 42 per cent higher than comparable areas without investment, while levels of deprivation improved by 12 per cent. Even smaller investments generated measurable benefits, with areas receiving more than £500,000 experiencing GVA growth 14 per cent higher than comparable communities.
These findings reinforce a simple but important principle: investment in civil society is not merely a social good, it is an investment in economic growth, prevention and resilience. Strong community organisations can help address problems early, reducing pressure on public services and limiting the need for more costly interventions later.
At the heart of communities
At the heart of this success are community buildings. Community centres, village halls, faith buildings, youth hubs and multi-purpose facilities provide the physical foundation from which civil society operates. Their value extends far beyond the activities they host. They act as neighbourhood anchors, bringing people together, creating a sense of place and providing some of the few genuinely accessible and inclusive spaces remaining in many communities. In many deprived areas, they are among the last shared civic spaces where residents can connect, access support and participate in community life.
Yet the long-term sustainability of community buildings is at risk. Research from Social Investment Business suggests that rising asset disposals from local authorities is associated with increased charity closures, and the rising pressure of energy costs and low energy efficiency is putting charity budgets under severe strain. Indeed, community spaces are some of the least efficient buildings in the country, with bills surging by 12 per cent since the start of the Iran war. When a community building closes, the consequences extend far beyond the loss of a physical asset. Services disappear, volunteers are lost, social connections weaken and residents can be left without vital sources of support.
Civil society is central to the government’s ambitions to end homelessness, improve outcomes empower local communities, and renew public services. To harness this potential fully, we must support not only the organisations themselves but also the infrastructure they depend on. Investing in them is therefore not an optional extra. It is a necessary condition for delivering stronger communities, more effective public services and sustainable local growth. The Warm Homes Fund provides an oven-ready route to strengthening the viability and sustainability of these buildings for the next generation.
