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Our new research shows charities face £3 billion in cuts over the next five years

8th August 2011

Our new research report, Counting the cuts (PDF, 429 KB), published today, 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 voluntary and community sector 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.

We have also asked charities to provide examples of cuts they have faced through our crowdsourcing website, Voluntary Sector Cuts, in collaboration with a number of other infrastructure organisations. Over the last six months, nearly 500 charities have reported cuts worth over £76 million.

Alongside the report we have identified seven deadly myths about the relationship between charities and government, such as the assumptions that charities live off government handouts and aren't playing their part in dealing with the deficit. Help us set the record straight by adding any other myths that need correcting in the comments section.

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