Local councils must “act with fairness” to the voluntary sector and avoid salami-slicing when setting budgets, Acevo, Navca and Compact Voice have said in a joint letter sent last week to all local councils.

The letter calls on councils to help charities by continuing to use grant funding and by adopting a “good practice approach to commissioning” which includes engaging with organisations at all stages.

It also calls on councils to follow the requirements of the Social Value Act, which requires councils to have regard to the added social value of organisations they commission from, and to support social investment at a local level.

“Salami-slicing will mean doing nothing well, so we have to find new approaches,” the letter says. “Your local voluntary and community sector can help because you share common goals of defending and strengthening communities. We all want stronger, more resilient communities that are ready to face challenges and seize opportunities.”

The letter says local government “has always been a friend of charities” and that “even in this difficult environment there are opportunities” for local government to work with the sector.

“Please talk to local VCS organisations in your area and make them part of the solutions to challenges you face,” the letter says.

The letter also says that councils have a duty to follow statutory guidance on best value, and should follow the rules in the Compact.

“We are writing to remind you to act with fairness when agreeing budgets,” the letter says. “At a time when local councils face the biggest cuts in living memory, it is still important to abide by these legal precepts but we must also move beyond this simple approach.

“We understand the pressure local councils are facing due to central government finance decisions, so want to help you understand how the voluntary and community sector can help you maintain vital support for communities in these tough times.”

The letter was signed by Simon Blake, chair of Compact Voice, Joe Irvin, chief executive of Navca and Stephen Bubb, chief executive of Acevo.