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Court makes council review funding cuts after making 'very serious error'

Posted: 23 September 2004 | Subscribe Online


The landmark High Court victory of a group of voluntary organisations over Leicester Council will encourage more challenges of local authority decisions, a leading voluntary sector body has warned.

Mr Justice Silber ruled last week that the council had made a "very serious error" in cutting £11.6m to six voluntary bodies without proper consultation.

Chief executive of the National Association of Councils for Voluntary Service Kevin Curley described the judgment as "historic", adding that in 30 years of working within the sector he had seen no other case like it.
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"We will be making sure that our 330 members know about this case and know how to take the step of using judicial review as a means of challenging bad practice by local authorities," said Curley.

He added: "Crucially, Leicester Council is one of the remaining few that does not have a compact with the voluntary sector. But even if it had one, what matters is how councils consult."

Overturning the council's decisions, the judge said it had denied the bodies, which include the Turning Point Women's Centre, "a fair crack of the whip" and was "conspicuously unfair".

He added that the council would have to begin "consulting afresh" if it wanted to cut cash for the groups.

The council wrote to groups in January this year saying it was considering ceasing all funding and that they should reply with comments the following month.
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All groups responded but in late February they received letters saying the council was cutting all funding.

But the judge found the local authority did not explain to the groups what criteria they had to meet to make a case for continued funding and the factors going against them. It also failed to give adequate reasons for its decisions.

Council leader Roger Blackmore said he was deeply disappointed that the judge had found some "technical deficiencies" in the way the council had consulted with some of the six groups affected, insisting that they had all fully understood the council's reasons for proposing the cuts.

Blackmore said a fresh consultation would be undertaken as "speedily as possible" and, meanwhile, funding for the groups would remain.


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