Charities 'to face £3bn in cuts' says report

Charities are facing cuts totalling nearly £3 billion over the coming five years due to government spending reductions, according to a report released today.

The National Council for Voluntary Organisations used figures on the Government's spending plans produced by the Office for Budget Responsibility to calculate what they believe is the first authoritative figure for the impact of the austerity programme on charities.



They found that the voluntary sector will lose around £911 million a year in public funding by 2015/16, with a cumulative loss of £2.8 billion over the five years 2011-16.



Karl Wilding, head of policy and research at NCVO, said: "Putting an authoritative figure on the extent of the cuts to date has been like trying to pin jelly to the wall.



"Estimates have varied widely and this report provides a solid baseline figure based on the Government's own figures.



"Many charities are unwilling to speak out for fear they will jeopardise other funding streams, but we currently face the perfect storm of an increase in demand and nearly £3 billion public sector cuts - this is a significant cause for concern because it will significantly hamper the ability of charities to support those most in need."



NCVO said that the impact of the cuts will be felt unevenly across the charitable sector, with funding from certain government departments shrinking more dramatically than others.



It is possible that the total reduction will be "much higher" than the £2.8 billion estimate, said NCVO.



Today's report comes a week after research by the anti-cuts campaign False Economy suggested that more than 2,000 charities are being forced to close services and sack staff as local authorities slash their funding.



Shadow Cabinet Office minister Tessa Jowell said: "What is becoming apparent is the scale of the cuts that charities are facing across the country, which are beginning to undermine the very building blocks of community life.



"What is lost in the next few years may be impossible to rebuild in 10. Soaring speeches on the Big Society will ring hollow when the people that are responsible for delivering it are being made redundant and cutting back on the services that they offer.



"It beggars belief that the Tory-led government still do not have a complete picture of the impact that their actions will have.



"That's why, at the very least, the Tory-led government should carry out a thorough and comprehensive review of the impact of their tax and spending plans on charities and local voluntary organisations, before the House returns in September."



A Cabinet Office spokesman said: "Big Society offers the voluntary sector many new opportunities to grow.



"Our reforms will allow the voluntary sector to bid for public service contracts worth billions of pounds. Just last week Big Society Capital launched with an expected £600 million to give the sector access to much-needed finance, which will help them expand and bid for these new contracts.



"And we're doing more to support giving and philanthropy including measures in the Budget estimated to be worth £600 million over the lifetime of the Parliament. This is just the start.



"Parts of the sector are already thriving, this week Social Enterprise UK reported their sector had stronger growth than mainstream business.



"We do have to deal with the country's debt, that costs £120 million a day in interest alone.



"Getting public spending under control is as important for charities as it is for every other part of society.



"But we are supporting them, already over 1,000 organisations which are vulnerable to public spending cuts have been awarded funding from our £107 million Transition Fund."



Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Office Administrator

£16000 - £20000 per annum: Recruitment Genius: Established managed services IT...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

Recruitment Genius: Plant Fitter - Construction Industry

Negotiable: Recruitment Genius: This well established construction equipment d...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + Uncapped Commission: SThree: As a Trainee Recruitm...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003