251 LIOs, read in detail.

Several LIOs flag named contracts ending without a successor — sometimes a council taking the service in-house, sometimes a commissioning model that simply stops. The single-contract dependency is a structural risk for infrastructure orgs.

• “Level of funds required to maintain service delivery in the event of a significant unanticipated loss of funding or shortfall in income, or other reasons of need (e.g., the unforeseen, far-reaching impact of Covid-19 including the implications of lockdown on funding and…”
• “Reductions in Public Sector Funding: Diminishing local and central government investment in the voluntary and community sector remains a critical concern. These reductions may limit opportunities for collaboration, commissioning, and grant funding, particularly in…”
• “Likelihood and impact of different income streams falling below, or associated expenditure exceeding, budget levels, including significant recent instances of long-standing grants being terminated (e.g., Kent County Council funding of befriending services).”

Multi-year contracts agreed at fixed prices — typical for local-authority commissioning — are exposed as wages, employer NICs and operating costs rise faster than the contract uplift.

• “Rising costs, wage pressures, and funding uncertainty forced many Voluntary Community Sector Enterprise (VCSE) organisations to review services. Increased demand for services (e.g. poverty, mental health, homelessness) stretched capacity and council funding pressures leading…”
• “It is harder for local charities to raise money than in previous years, with fewer sources of funding and grants not keeping pace with rising costs. This increases the number of applications and awards required to secure funding and the amount of monitoring and reporting,…”
• “Planned activity levels and organisational commitments and level of operating funds needed to cover essential associated management, administration, fundraising and support costs (including immediate concerns about the extent and timing of utility cost increases and their…”

Specific local demand pressures named in trustees' reports — cost-of-living impact on member orgs and beneficiaries, mental health workload, rising hate-crime caseload, climate physical risk to vulnerable neighbourhoods.

• “Rising costs, wage pressures, and funding uncertainty forced many Voluntary Community Sector Enterprise (VCSE) organisations to review services. Increased demand for services (e.g. poverty, mental health, homelessness) stretched capacity and council funding pressures leading…”
• “Potential volatility in the value of, and uncertainty in the receipt of, sufficient annual funding grants, particularly unrestricted funds. This risk is heightened by ongoing economic challenges facing the UK, including the longer-term impact of the COVID-19 pandemic and the…”
• “Planned activity levels and organisational commitments and level of operating funds needed to cover essential associated management, administration, fundraising and support costs (including immediate concerns about the extent and timing of utility cost increases and their…”

The legal-and-regulatory environment — safeguarding obligations, health and safety, GDPR, employment law, equality duties — is getting denser; LIOs flag the compliance overhead and the consequences of a single failure.

• “Working in an environment where the weight and complexity of legal requirements in areas such as health and safety, safeguarding, employment law, equal opportunities and [the LIO] is growing. The "whole system approach" brings its own challenges, e.g., the need for technical…”
• “Non-financial risks in terms of adopting procedures to ensure legislative compliance with health and safety of staff, clients and visitors, employment law and equal opportunities.”
• “Financial mismanagement, inaccuracies, or non-compliance with regulatory standards, which could lead to financial losses, legal penalties, and damage to the company's reputation.”

LIOs are small. Many flag that the loss of one or two senior staff would materially affect delivery, with no ready-made replacements and limited capacity for handover or succession planning.

• “High level of dependency on key staff, exacerbated by the diversity of activities and high levels of specialism among senior staff. Significant risk if staff leave through resignation or illness, with no ready-made replacements beyond the short term.”
• “General cost of living pressures, impacting the ability of the charity to sustain current levels of support, including retention of staff and volunteer resource.”
• “Limited resources to recruit and retain staff to deliver programmes, compounded by high costs of living in London and salary constraints of local charities.”

Grants are getting smaller, shorter, and more reporting-heavy. Several LIOs flag that monitoring overhead is eating into delivery time, and AI in funder selection is starting to surface as both opportunity and threat.

• “Grant funding remains highly challenging, with funders continuing to focus on short-term grants, often for relatively small amounts but with increased expectations around reporting. Securing grant funding is highly competitive, with artificial intelligence both a help and a…”
• “It is harder for local charities to raise money than in previous years, with fewer sources of funding and grants not keeping pace with rising costs. This increases the number of applications and awards required to secure funding and the amount of monitoring and reporting,…”
• “External Financial Risks: [the LIO]'s income is generated through grants, contracts and direct, paid for, services. The landscape is changing nationally and locally with, for example, the abolition of NHS England, the restructure of the Integrated Care System and the…”

Volunteer numbers, demographics and engagement patterns are shifting — cost-of-living pressures, ageing volunteer pools, post-pandemic digital habits, and health/wellbeing constraints are all named.

• “Risks related to pay policy, trustee code of conduct, conflict of interest policy, trustee recruitment and retention policy, data protection policy, volunteer recruitment policy, ex-offenders volunteering policy, and revised recruitment policy.”
• “The nature of volunteering is changing, both locally and nationally, due to digital advances, the cost-of-living crisis, shrinking workforces, rising health and wellbeing challenges, cross-cultural needs, and other drivers.”
• “Recruitment of new volunteer drivers is the main issue for doing more journeys, leading to inability to do all journeys people need.”

Integrated Care Boards are merging with neighbours, NHS England is being wound down, and VCSE collaborative funding cycles end in 2025/26 with no certainty about what replaces them.

• “The current ICS VCFSE collaborative first two years of funding is due for renewal at the end of financial year 2025/26. With the clustering of [the LIO]'s with Worcestershire and Herefordshire, [the LIO] has not yet learned if there will any impact on year 3 and 4 funding for…”
• “All [the LIO]'s across England are moving towards clustering arrangements which may alter how they fund its current providers. Coventry and Warwickshire are to be clustering with Herefordshire and Worcestershire. This may alter the role of the VCFSE collaborative and…”
• “External Financial Risks: [the LIO]'s income is generated through grants, contracts and direct, paid for, services. The landscape is changing nationally and locally with, for example, the abolition of NHS England, the restructure of the Integrated Care System and the…”

Council mergers into unitary authorities, devolution deals and combined-authority restructures are rewriting how LIOs are commissioned — often by bodies that don't yet exist on the org chart.

• “Political and Structural Change: The evolving political landscape at both national and local levels introduces uncertainty for the sector. In particular, the Local Government Reorganisation and emerging devolution arrangements present both risks and opportunities. These…”
• “[the LIO] has been recognised by central government as an area expected to be part of devolution, moving towards a unitary authority, or with an arrangement that provides public services across Warwickshire. [the LIO] currently receives funding from all but one Council…”
• “External Financial Risks: [the LIO]'s income is generated through grants, contracts and direct, paid for, services. The landscape is changing nationally and locally with, for example, the abolition of NHS England, the restructure of the Integrated Care System and the…”

LIOs participating in multi-employer pension schemes face deficit-recovery payments and triennial valuations through 2025/26 — often disproportionate to current staff numbers.

• “Continued membership of WMPF for one long standing and several ex staff members presents an on-going financial challenge with a tri-annual actuarial valuation due to take place during 2025, as the level of contribution rates continue to increase.”
• “The charity is subject to a provision relating to additional contributions payable to The Pension Trust Pension Scheme until 2025 under an agreed deficit recovery plan. The additional deficit contribution for the year was £5,878.”
• “Risk associated with membership of the Local Government Pension Scheme (a defined benefit scheme). The final cessation deficit has been set to £215k.”

Increasing reliance on digital systems, combined with the sensitive nature of safeguarding and beneficiary data LIOs handle, makes cyberattack and data breach a named risk in many registers.

• “Working in an environment where the weight and complexity of legal requirements in areas such as health and safety, safeguarding, employment law, equal opportunities and [the LIO] is growing. The "whole system approach" brings its own challenges, e.g., the need for technical…”
• “Technological risk, arising from increasing reliance on digital systems exposes VANS to cyberattacks, data breaches, and system failures, leading to the loss of sensitive information, financial data, or critical operational systems, disrupting services, damaging trust, and…”
• “Risks related to pay policy, trustee code of conduct, conflict of interest policy, trustee recruitment and retention policy, data protection policy, volunteer recruitment policy, ex-offenders volunteering policy, and revised recruitment policy.”

A LIO's income often comes partly from its members. Several flag that members are reducing paid services or letting memberships lapse — a feedback loop where sector stress flows into the infrastructure body.

• “Financial Pressures on Member Groups: Many of our member organisations are experiencing increased operational and financial constraints, which may reduce their ability to access paid support services or maintain membership contributions, potentially affecting our income streams.”
• “Political and Structural Change: The evolving political landscape at both national and local levels introduces uncertainty for the sector. In particular, the Local Government Reorganisation and emerging devolution arrangements present both risks and opportunities. These…”

Strategic priorities tied to local Integrated Care Systems, social-prescribing networks, and VCFSE alliances — embedding the LIO in NHS commissioning.

• “Continue to strengthen the charity's role for the local VCSE sector, building on foundations laid in 2024/25, with a focus on collaboration, equity and community-led change.”
• “Establish a new place-based giving scheme for Redbridge through a co-production process involving local residents, VCSE organisations and statutory partners. The scheme will provide a platform to bring in resources (time, money and skills) to support community priorities,…”
• “Continue to develop youth participation work in health and care through partnership with the University of Hertfordshire and NHS North East London. This will involve supporting young people to shape and lead work, expanding the team of Young Advisors, conducting peer…”

Plans focused on growing the offer to local voluntary-sector members — training, networking, governance support, bid-writing help.

• “Help VCS organisations to practically implement more flexible volunteer roles and informal recruitment (e.g. micro-volunteering, virtual volunteering, one-off and ad hoc volunteering, 'taster' sessions); increase collaboration with institutions, organisations and initiatives…”
• “Key activities include: development work with new and changing VCS groups and social enterprises; encouraging and celebrating volunteering, linking volunteers with groups, and supporting training and development of volunteers; promoting financial accountability within VCS…”
• “Key activities include: developing and providing website blogs; offering financial services such as payroll and pension service; providing access to funding sources; administering local grant schemes; providing internet-based information service with links to relevant local…”

Explicit strategic priorities to represent the local voluntary sector to commissioners, councils, and national bodies.

• “Key activities include: promoting and representing local VCS interests locally, regionally & nationally; removing barriers to VCS involvement in local, regional, national work; keeping the local VCS informed about relevant changes and developments; responding to VCS needs and…”
• “Enabling change for the things that matter to our communities. This includes advocating for and championing a civil society covenant, leading state of the sector research and community insight work, leading collaborations to attract investment, and working through LACVS to…”
• “Engage widely with volunteers, volunteer managers, and volunteer involving organisations to develop vision and strategies for volunteering, with Community CVS as the co-ordinating voice. Move annual Community Volunteer Awards to Ewood Park and embrace the 6P framework.”

Strategic priorities about growing volunteer participation, brokering new opportunities, and reaching new volunteer demographics.

• “Raise awareness of who and what we are amongst more people and organisations across the borough who are involved in volunteering; understand what is needed to increase quality and quantity of volunteering; be recognised as a best practice model across London.”
• “Help VCS organisations to practically implement more flexible volunteer roles and informal recruitment (e.g. micro-volunteering, virtual volunteering, one-off and ad hoc volunteering, 'taster' sessions); increase collaboration with institutions, organisations and initiatives…”
• “Key activities include: development work with new and changing VCS groups and social enterprises; encouraging and celebrating volunteering, linking volunteers with groups, and supporting training and development of volunteers; promoting financial accountability within VCS…”

Plans naming DEI commitments, lived-experience leadership, or specific work to reach under-represented communities.

• “Establish a new place-based giving scheme for Redbridge through a co-production process involving local residents, VCSE organisations and statutory partners. The scheme will provide a platform to bring in resources (time, money and skills) to support community priorities,…”
• “Continue to develop reputation in leadership and management training, focus on skilling under-represented population groups and industrial sectors, deliver flexible bitesize training with accredited units, and develop commercial training offer to support 6Ps delivery (e.g.,…”
• “To take the work of building networks, peer groups, collaborations, and partnerships further over the next three years, integrated into the central strand of future National Lottery Reaching Communities funding. This will involve building a culture of people-powered change,…”

Plans naming a deliberate move into traded services, consultancy, or social enterprise — typically in response to grant volatility.

• “Continue to grow Team UP; create new offers that are fresh and relevant to help residents and organisations to achieve their goals; monetise/unlock financial value of these offers.”
• “Key activities include: development work with new and changing VCS groups and social enterprises; encouraging and celebrating volunteering, linking volunteers with groups, and supporting training and development of volunteers; promoting financial accountability within VCS…”
• “Develop thinking around new economic models that develop the role of civil society/social economy as part of the foundational economy and create new charities/social enterprises to meet gaps in provision.”

Building work, new premises, lease decisions, or asset transfers from the council — capital projects that show up as a strategic priority.

• “Work with people in recovery from alcohol or substance misuse, local authority, Spark Recovery Collaborative partners, and wider VCFSE, public, and commercial sectors to build community assets for a resilient recovery community.”
• “Building capabilities of individuals, organisations, and communities to lead change. This includes helping local communities develop responses to their needs, co-producing pathways and solutions, and developing new approaches to mobilising communities.”
• “Focus on building a longer-term sustainable legacy from short-term funding infrastructure development activity.”

LIOs explicitly planning to merge with another infrastructure body, wind up, transfer activities to a sister org, or share back-office functions with peers.

• “Consolidating the merger with Rushcliffe CVS, building on shared strengths, and continuing to serve communities with dedication and care over a larger area to widen impact and give a more secure future.”
• “Deliver an impactful platform that supports both beneficiaries of Social Prescribing and the VCSEF organisations delivering them, and working with the Health and Care Partnership on Integrated Neighbourhood Teams.”
• “Consolidate outreach infrastructure drop-ins: In community venues and libraries.”

Plans naming net-zero targets, environmental work for the sector, or climate-resilience as a strategic priority.

• “Key activities include: implementing full cost recovery within VANEL funding bids; negotiating tailor-made charging structures with members for extra support; generating adequate reserves to develop and deliver new services and maintain reserves policy; encouraging VCS groups…”
• “Working with the climate change community across public, commercial and VCFSE sectors to create a climate action network. This includes widening awareness, education, participation, and developing new volunteer programmes for carbon literacy.”
• “Focus on building a longer-term sustainable legacy from short-term funding infrastructure development activity.”

Plans to invest in CRM, data systems, digital platforms, or AI — both to streamline operations and to better serve members.

• “Creating an algorithm-driven and future-facing brand, with fluency in digital platforms, that modernises and improves access to shared information on community and youth.”
• “Deliver Technology and AI workshops: Delivering Technology and AI workshops to the sector.”
• “Continue to roll out the organisational development plan, including improvements to IT systems and introducing AI to day-to-day working.”