social enterprise

This article is provided courtesy of the news feed at http://www.newstartmag.co.uk/news

A pioneering project aimed at reducing unemployment in Luton has been hit by further delay after it was referred to ministers who are reviewing the previous government’s spending commitments.

Marsh Farm Community Development Trust (MFCDT) had hoped to start delivering the UK’s first Organisation Workshop (OW) project on 1 August.

But the scheme was first hit by a spending freeze on New Deal for Community projects of more than £250,000, imposed by the new coalition government.

The freeze ended in July following pressure from MFCDT and local partners. But officials from the Government Office for the East of England (GOE) have told MFCDT that DCLG lawyers and economists are still reviewing the project.

The GOE has told Marsh Farm that it can once again consider projects, but they must demonstrate a strong ‘value for money’ case.

Ministers require government offices to consider ‘the benefit of not spending the money which could therefore contribute to reducing public expenditure’ in their appraisal of projects.

But Marsh Farm spokesperson Glenn Jenkins says the project shows a 12 to one return on investment according to the assessments that MFCDT completed, which were backed by a GOE lawyer during her review of the project documents.

The OW project, which is modelled on a South American programme aimed at boosting enterprise and job creation in deprived areas, received backing from deputy prime minister Nick Clegg prior to the election.

And it was the deputy prime minister’s personal advisor who informed MFCDT of the end of the funding freeze after its campaign supported by Luton’s Labour and Conservative MPs.

Mr Jenkins says the delivery of the project is ‘time critical’ and its suspension is having a significant impact on the ability of MFCDT to target activity at the long term unemployed and enterprise development.

Earlier this year New Start reported on how the organsation feared for its future because a charity was withholding £125,000 of the money it was keeping in trust for MFCDT.

This stand-off was resolved when Novas Scarman Group agreed to repay the money to MFCDT allowing the trust to meet outstanding obligations.

New Start approached the government for a comment, but no spokesperson was available at the time of going to press.