Minister for the Third Sector, Angela Smith, has admitted that she was in breach of the Compact when she pulled funding for the Campaign Research Programme.
Speaking during Cabinet Office questions in the Commons, Smith said she regretted breaking the Compact, which is supposed to guarantee how the Government and Voluntary sector works together, but maintained the decision was justified.
The decision to pull £750,000 of funds which had been promised to a group of small charities, caused dismay in the sector and NCVO has been campaigning on behalf of the affected groups.