What is the VCS role in London’s economy? Alison Blackwood, LVSC

VCS contribution to wider London economy A strong VCS is a major contributor to London’s social resilience and economic success VCS therefore has a important interest in the work of the LEP Economic vole of VCS underappreciated and not well understood Direct economic impact: as a major employer, generating revenue Indirect economic impact: reducing social costs, improving public services, enhancing community cohesion

Direct economic impact of VCS Generating revenue 26,000 charities in London bring in £18billion revenue (Guidestar, 2006) Major employer Third sector employs 315,000 FTEs in London, 9.5% of total paid workforce (Data from 2008 National Survey of Third Sector Organisations) By comparison, financial services sector employs 8% of London workforce VCS employs a greater proportion of women, BAME and disabled people, and provides a pathway to work for unemployed or economically inactive

Direct economic impact of VCS Facilitating and brokering volunteering 72% of Londoners volunteer in some way (46% of these on a regular basis) (IVR 2008) Tower Hamlets study found the value of residents’ time spent volunteering was equivalent to almost £52 million per annum (based on average wage) (Volunteer Centre Tower Hamlets, 2007)

VCS indirect contributions to London economy Improving design and delivery of public services VCS specialist services has very well developed expertise in supporting disadvantaged groups and promoting inclusion Holistic approach joins up provision of health, employment, skills, advice, etc, and fosters local partnerships, to ensure best value in public services Downstream public savings in expenditure through reduced dependence on public services (welfare, health, housing, criminal justice, etc) Improving social cohesion and quality of life Promoting active engagement and empowering communities to address local problems improves community cohesion Improved quality of life enhances London’s competitiveness by ensuring it remains attractive to workers and business

VCS indirect contributions to London economy Tackling poverty and inequality Recession and cuts are impacting disproportionately on services for those who already face greatest disadvantage (Big Squeeze, 2012) Sector’s focus on tackling poverty and inequality generates downstream savings to public purse Research suggests more equal societies see improved quality of life for all residents regardless of income – further enhancing London’s competitiveness