Backing for ReadiBus over ‘gagging clause’
National publication says charity should reject funds on point of principle
THE ReadiBus charity has won national backing for its refusal to sign a West Berkshire Council “gagging clause” in exchange for funds.
Meanwhile, the district council is refusing to even discuss the issue further, trustees claim.
The organisation helps people with restricted mobility to get out and about independently and was named as one of the best for pandemic service provision at the CT (Community Transport) Awards for 2021.
West Berkshire Council reduced its funding to ReadiBus by 68 per cent for 2019/20 and further reduced its funding for 2020/21.
But, more controversially, the council then withheld this grant funding for the second half of the 2020/21 year, when it made it a condition of its release that the local authority must have the right of cen
sorship over any public statements made by ReadiBus.
ReadiBus trustees have declined to agree to this, although the charity has been able to maintain ‘goodwill’ service provision throughout the rest of the 2020/21 year.
The clause at issue states: “The charity shall not, and shall take reasonable steps to ensure that staff shall not, make any press announcement or publicise the agreement or any part of the agreement in any way, except with the prior written consent of the council.”
It adds that such consent “will not be unreasonably withheld”.
The council has defended the clause as “standard”.
Such clauses are an increasingly common element of government contracts – according to a recent investigation by The Times newspaper, cabinet ministers barred at least 40 charities from publicly criticising them, their departments or the Prime Minister.
Now the UK’s leading publication for the charity and voluntary sector, Third Sector, has drawn attention to West Berkshire Council’s use of a a similar clause in its proposed grant agreement with ReadiBus.
It states: “While the act of agreeing to a gagging clause can free up funding, it can potentially come with a reputational cost attached.”
The Third Sector article suggests that “on a point of principle, charities ought to reject donations that compromise how they could discuss or frame the cause they serve”.
ReadiBus chairwoman Sophie Bowlby said the council has declined an offer to find a resolution and that it had emailed trustees recently to state it does “not feel there is any merit in meeting to discuss this further”.
West Berkshire Council did not comment on that, when approached by this newspaper.
However, it had insisted the offending clause “merely ensures that the service provider notifies the council before any information concerning the agreement is put in the public domain”.
Meanwhile, the charity continues to provide a service on two days per week in Newbury and Thatcham, funded through various sources, including the donations from members of the public and contributions from Newbury and Thatcham town councils and Greenham Trust.