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Since the Local Government Act 2003 came into effect on 1 April 2003, councils have more freedom to take key financial decisions.

In addition to having more control over council tax discounts, local authorities can borrow without government consent in order to pay for assets.

One of the innovative ways in which local authorities are working to improve local services is through partnership with voluntary and community sector suppliers. The public sector is now the largest single source of funding for voluntary organisations according to the UK Voluntary Sector Almanac, contributing 37% to the income of the sector as a whole. While a majority of this money still comes in the form of grants, an increasing percentage of income is earned through contracts with local authorities and health authorities, in areas that include regeneration, housing and education.

Charities and voluntary organisations are more involved in public service delivery than ever before, often on the front line working with service users; according to the NHS Confederation, around 30% of NHS care is now delivered by non-NHS organisations. With the National Procurement Strategy for Local Government demonstrating the commitment of the Government and the LGA to further improving the ability of voluntary and community sector suppliers to win local government contracts, this trend is likely to increase.

This makes it imperative that public sector bodies work effectively with the voluntary and community sector, in order to ensure a high standard of service for users. In a recent consultation by NCVO (The National Council for Voluntary Organisations), 77% of local authorities surveyed said they had 'an active working relationship' with the voluntary sector and had current partnership working arrangements in place. Over 50% of respondents said that NCVO could offer them information on the voluntary sector not available elsewhere. A further 86% felt NCVO could offer unique partnership and networking opportunities.

Through its Public Sector Affiliate Scheme, NCVO offers local government regular briefings on the voluntary sector, in-depth publications and access to a secondment scheme.

Lucy de Groot, Executive Director of the Improvement and Development Agency (IDeA), said: "It can only benefit local government and the communities they serve to improve their relationship with the voluntary sector. With the pressure of time and resources always present in public services, affiliation with NCVO is a simple, effective way to receive relevant, tailored, timely information about the voluntary sector that will inform your partnership working."

For more information about NCVO's public sector affiliate scheme, please contact Kate Webster on 020 7520 2445 or kate.webster@ncvo-vol.org.uk

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