Share

NCVO forecasts £2.1bn statutory funding drop by 2017

NCVO forecasts £2.1bn statutory funding drop by 2017
News

NCVO forecasts £2.1bn statutory funding drop by 2017

Finance | Jonathan Last | 15 May 2013

NCVO is predicting that public funding for charities could drop by 12 to 15 per cent by 2017/18, losing the sector an estimated £2.1bn.

The umbrella body’s report Counting the Cuts uses Office for Budget Responsibility forecasts of public spending and NCVO UK Civil Society Almanac data on charities’ income sources. The prediction is made in comparison to data from 2010/11, the latest year for which it is available.

The analysis estimates the impact that reductions in public spending will have on the voluntary sector, and states that such reductions are likely to focus on departments which are important sources of income for charities. Local government will be hit especially hard, the report speculates.

“If the cuts are passed on proportionately to charities,” NCVO says, “the sector’s income will be £1.7bn (12 per cent) lower in 2017/18 than it was in 2010/11, using 2010/11 prices.

“If cuts to charity contracts and grants are disproportionately large, as evidence from Compact Voice’s survey of local authorities in England suggests they have been, the reduction could be as much as £2.1bn (15 per cent).”

The government is due to announce the outcomes of its spending review for 2015/16 in June, which NCVO’s report says “is one factor that could have an impact on forecasts for 2015/16 and beyond”.

The umbrella body also states that with the general election due in May 2015, an incoming government will have the opportunity to set out new spending plans – therefore “estimates beyond 2015 should be treated as provisional”.

Sir Stuart: ‘Commissioners must engage with charities’

Sir Stuart Etherington, chief executive of NCVO, said the analysis suggests that charities delivering local public services are most vulnerable to forthcoming public spending reductions.

“Charities deliver high-quality, professional services,” he said. “When their expertise is lost it can be hard to regain. Of course, whichever charities lose funding, it is people and communities who lose services and support.

“It is of the utmost importance that local commissioners engage fully with charities in their area and think creatively about how to manage the issue of declining resources. The voluntary sector excels at innovation and adaptation, so local authorities must embrace its ideas in order to best serve their communities.”

The NCVO CEO added that while large new payment-by-results programmes offer some opportunities for the sector, it is important that these schemes are structured so that they suit charities of all sizes.

You can download NCVO’s full Counting the Cuts report from its website here.

 civilsociety.co.uk 

Want access to all civilsociety.co.uk content?

Subscribers gain access to all expert advice, analysis, surveys, special reports and the full archive of content from as little as £43.20 per year. Find out more...

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Donations double in one day following Marathon runner’s death

16 Apr 2014

The amount donated to the National Osteoporosis Society, the charity 42-year-old Robert Berry was running...

Sector 'extraordinarily disconnected' from public, CFG chair says

15 Apr 2014

Charities are becoming “extraordinarily disconnected” from donors and supporters who do not understand...

Stephen Frost announced as Charity Awards host

15 Apr 2014

Civil Society Media is delighted to announce that this year's Charity Awards will be presented by actor...

Trussell Trust sees use of its foodbanks 'almost triple' in a year

16 Apr 2014

The number of people using the Trussell Trust’s foodbanks rose from 347,000 to 913,000 in a single year,...

OSCR tells alternative medicine organisation to stop calling itself a cancer charity

16 Apr 2014

OSCR has taken action to stop an organisation offering alternative therapy falsely calling itself a “registered...

Ex-National Theatre employees have 'strong' case for breach of contract claim, says judge

16 Apr 2014

Five musicians have lost their court bid to be to be reinstated at the National Theatre after they were...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

 Twitter button

@CSFinance