Cuts will lead to drop in charitable funding, warns NCVO
Charities will miss out on £2.8bn of public funding in the next five years if planned government cuts are passed on proportionately to the voluntary sector, according to the National Council for Voluntary Organisations (NCVO).
The revelations were delivered in NCVO’s ‘Counting the Cuts’ report, which looks at how reductions in central and local government funding over the next five years could affect the voluntary sector. The NCVO predicts that if government departments pass on cuts proportionately, the voluntary sector will lose 7.7 per cent of its public funds by 2016.
This means charities will receive £10.89bn in 2015/16, compared to £11.8bn in 2010/11. The report claims ‘pressure on local government finance threatens to reduce the sector’s capacity at the very time that demand is increasing and government wants the sector to do more.’
Donna Young from BT MyDonate said: “The fact that charities could miss out on £2.6bn in funding in the coming years is worrying news. It’ll mean charities will need the general public to pull together and dig even deeper into their pockets to help sustain the work they are doing for good causes.”