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Charities face £3 billion cuts over next five years

9 August 2011

NCVO's new research report, Counting the cuts (PDF, 429 KB), shows that according to the government's own figures charities are facing nearly £3 billion in cuts over the spending review period (2011-2015).

In a detailed analysis of the government's projected spending plans, released from the Office of Budget Responsibility, the report shows:

► The UK voluntary and community sector will lose around £911 million a year in public funding by 2015-16.

► This means that, cumulatively, the sector stands to lose £2.8 billion from Government over the current spending review period.

These figures are reached by assuming that the government will cut the VCS on a proportionate basis, but in reality it's possible that the cuts could be much higher. Responses to Freedom of Information requests show that half of all Local Authorities are making disproportionate cuts to the voluntary sector.

VCS groups have also provided examples of cuts they have faced through Voluntary Sector Cuts, a project in which VSNW is a partner. Over the last six months, nearly 500 charities have reported cuts worth over £76 million, including 65 affected groups in the North West.

Alongside the report NCVO has identified 'seven deadly myths' about the relationship between the VCS and government, such as the assumptions that charities live off government handouts and aren't playing their part in dealing with the deficit.