Blears: 'Recession could cause civil unrest and fracture communities'

Published by Jon Land for 24dash.com in Local Government and also in Communities, Housing

The recession could tip Britain towards riots and civil disorder unless voluntary organisations are handed extra resources, Communities Secretary Hazel Blears will warn today.

Promising to come up with sustainable sources of funds by the summer, Ms Blears will say the economic downturn could either drive communities apart or bring them closer together.

"Economic recession has the power to do one of two things to a society," she is to tell Community Service Volunteers (CSV) in the Edith Kahn Lecture.

"It can either drive people apart, with an increase in distrust between individuals, more naked competition for jobs, and a fracturing of community spirit.

"We witnessed this in the 1980s and early 1990s, and at its most extreme, it culminated in cars and buildings burning on the streets of Brixton, Birmingham, and Liverpool. In some wards in my own city of Salford, we had 50% male unemployment, and it has taken a decade to repair the damage.

"Or economic recession can be the catalyst for communities to come together, for neighbours to construct new forms of collaboration, and for citizens to discover new reserves of courage and kindness.

"Which end of this spectrum we tilt towards will depend on a decisive factor: the role of the government in valuing volunteering, in creating space for local action, and in promoting innovation and experimentation."

As well as transferring assets such as disused buildings, markets and leisure centres to community groups, they needed to be assured of the funding needed to make proper use of them, she will say.

She had asked her officials to "bring forward by the summer a package of measures to give communities sustainable sources of income, through the recession, and into the recovery.

"In the wake of our mistrust of global financial institutions, there are new opportunities now for community shares and bonds, US-style community reinvestment programmes and a much closer look on how we measure the social return on public investment."

"The US Community Investment Act, whereby financial institutions must plough some of their profits into communities, might serve as an interesting starting point," she will suggest.

"My conviction is that our route through this recession must be characterised by greater devolution of power, and more opportunities for communities to take control.

"Not 'on your bike' like previous recessions, but how can we help you open a bike repair workshop, start a social enterprise to encourage cycling, start a bike-share scheme in your neighbourhood.

"In the light of the failure of the institutions of the free market, these institutions of co-operation are truly in tune with the spirit of the age."

She will concede that the row over MPs' expenses and the "smeargate" scandal were "as corrosive to our democracy as the row over bankers' bonuses and the bankruptcy of Lehman Brothers, Woolworths and so on is corrosive to our economy" but will express hope that they will prove a turning point.

"My hope is that the public's response to the crisis of legitimacy characterising our politics will be as constructive as at the moments of fulcrum in our democratic development: when rejection of the Rotten Boroughs led to the Reform Acts, or when women's demands led to us getting the vote.

"I am optimistic that the long, loud howl of outrage at the state of our politics can find practical expression through positive reform of the political system."

Liz Atkins, Director of Public Policy at the National Council for Voluntary Organisations (NCVO) said: "Hazel Blears is absolutely right.  As we have always argued, voluntary and community organisations will play a critical role in supporting communities through the recession.

"Our organisations bring people together and help to tackle unrest. But to do so they need to be properly resourced.

"We will work with her department to ensure that the resources she has promised can be used to best effect."