The ALG said a proposal was made at the July grants committee to reduce the amount of money boroughs currently pay into the ALG grants programme. The money retained by the boroughs would be used to fund voluntary groups in their own areas, so that they were better able to satisfy the needs of their local communities. The ALG would use the rest of the money to fund pan-London groups.
'Firstly, a final decision has not been made on this proposal. It will be discussed at a September meeting of the cross-party grants executive. A final decision will then be made by the ALG leaders' committee which sets the budget and policy framework for the grants programme. The leaders of all London boroughs make up the ALG leaders' committee and this ensures that any decision will be made at a truly pan-London level.
'Secondly, this proposal does not amount to a 'severe cut' but instead a re-allocation of resources to a local level. The proposal is that the money kept by the boroughs would be used to address the needs of local voluntary groups. The overall amount of funding provided by the boroughs to the voluntary sector would not change.
'The ALG takes its responsibility to the voluntary sector very seriously and all proposals to the grants committee will be scrutinised with the needs of Londoners in mind.