Financial difficulties within many local authorities, sometimes leading to the issuing of a section 114 notice (s114), is affecting communities across England. We know that this also affects many NAVCA members, who often receive funding from and work in partnership with local government.
Working with Lloyds Bank Foundation for England and Wales, we commissioned Counsel Ltd. to conduct cross-sector consultation and engagement to understand how section 114 notices work in practice, and the changes to the local operating environment that they bring.
We interviewed local government representatives and a range of voluntary, community and social enterprise (VCSE) organisations, including local infrastructure organisations (LIOs), to gather experiences of local government financial difficulty. Using these insights, we have created guidance for local and smaller VCSE organisations operating in areas where the council is experiencing financial difficulties, has issued a section 114, or may be likely to in the future.
We have also used the experience and knowledge shared by interviewees to collate a set of policy recommendations for local and central government – aiming to improve the practice around section 114 notices and achieve better outcomes for communities.
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Navigating a section 114 notice: Guidance for small and local VCSE organisations
This guidance can be used by any local VCSE organisations, to:
Policy Report and Recommendations for Local and Central Government
This policy summary can be read alongside the VCSE guidance, and is intended to provide additional information and context in relation to our key headline findings.
It offers policy recommendations for local and central government, calling for stronger partnership with the local voluntary sector and greater oversight and transparency of the s114 process.
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