Government's own figures show charities face £3 billion in cuts

A new report shows that according to the Government’s own figures charities are facing nearly £3billion in cuts over the spending review period (2011 – 2015).

The National Council for Voluntary Organisations undertook a detailed analysis of the Government’s projected spending plans released from the Office for Budget Responsibility. The report entitled “Counting the cuts” shows:

The UK charity sector will lose around £911 million in public funding a year by 2015-16.
Cumulatively, charities stand to lose £2.8 billion over the spending review period (2011- 2016).

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.”

Published alongside the report, NCVO have identified 7 deadly myths about the relationship between charities and government. These include the misguided assumptions that charities that receive money from government are not “real charities” and that most “live off government handouts”.

Karl Wilding commented “Alongside the weight of the challenging economic climate and the impact of spending cuts, charites have to contend with misinformation and myths which threaten to undermine the high levels of confidence in our sector.”

For more information contact Chloe Stables in NCVO’s press office on 020 7520 2474 or email chloe.stables@ncvo-vol.org.uk. For calls outside office hours, please ring 07714 243942.

Notes to editors:

The £2.8 billion figure is reached by assuming that the Government will cut the voluntary and community sector on a proportionate basis. Funding from some parts of government is hit particularly hard – including particular central government departments, local authority spending and capital expenditure.  In reality, it is possible that the cuts could be much higher. Cuts will be felt unevenly across the sector, and some parts of the sector will be hit harder. Responses to Freedom of Information requests show that half of all Local Authorities are making disproportionate cuts to the voluntary sector.

Spokespeople can be provided.

The full report can be downloaded from NCVO’s website from 11am on Monday 8 August http://www.ncvo-vol.org.uk/cuts-report

The 7 deadly myths can be viewed here from 11am on Monday 8 August http://www.ncvo-vol.org.uk/seven-deadly-charity-myths

The National Council for Voluntary Organisations (NCVO) www.ncvo-vol.org.uk is the umbrella body for the voluntary sector in England, with sister councils in Wales, Scotland and Northern Ireland.  NCVO has over 8,400 members, ranging from large national bodies to community groups, volunteer centres, and development agencies working at a local level. With over 280,000 staff and over 13 million volunteers working for our members, we represent and support almost half the voluntary sector workforce.