Camden Council has announced a £5.1m per year funding package for charities in the borough, and has said it will award charities funding for up to seven years.

The figure is the largest pot of money currently available to voluntary organisations by a local authority anywhere in the UK, the council said.

The fund was given the go-ahead at a Camden Council meeting on Wednesday and will be available for charities to apply for in the new year.

The council said it wanted to continue to provide high quality funding to charities, and understood the need for long-term agreements.

The money will form two funds – the Strategic Partners Fund valued between £1.8m and £2m and a £1m Community Impact Fund.

The Strategic Partners Fund is aimed at charities working with Camden communities with the highest level of depravation, while the Community Impact Fund will tackle “ingrained problems” in the borough, the council said. 

A spokeswoman for Camden Council said the additional £2.3m is allocated to the council’s 'communities and third sector team' and grant-giving umbrella organisations, including Camden Advice Partnership.

Councillor Sally Gimson, cabinet member for adult social care and health, said voluntary organisations play an "essential role in tackling some of the borough’s most ingrained problems". 

"Although some councils have cut funding completely – we believe it is vital that we continue to support them," she said.

Gimson said the council faced a"huge financial challenge" as a result of government cuts and has been forced to reduce its budget by £75m by 2018. But she said the decision to channel funds to voluntary organisations was "not just about making savings".

"Thanks to the input of dozens of organisations across the borough, I am confident that this new arrangement will provide fairer funding, and funding that is focused on the most vulnerable in our communities,” she said.