Half of local authorities in England reduced the amount of grant funding to the voluntary sector between 2011/12 and 2012/13 disproportionately, compared to the amount their own budgets were cut by, according to research from Compact Voice.

Compact Voice analysed the spending of 254 local authorities to the voluntary and community sector through grants and contracts. It found 56 per cent reduced the amount of grant funding between 2011/12 and 2012/13, with 50 per cent making disproportionate cuts to grant funding.

The Local Authorities Report, compiled following Freedom of Information requests made to 352 local authorities, also found that the amount of local authority spending on the voluntary sector through contracts had reduced.

Compact Voice warned that the local voluntary sector continues to be seen as a soft target for budget cuts, despite the statutory guidance 'Best Value' which says local authorities should not pass on larger cuts than they take on themselves.

Compact Voice called on the Department for Communities and Local Government to ensure that Best Value Guidance is being enforced.

Elsewhere, some local authorities were found to be engaging well with local communities through consultation, giving adequate notice about potential changes to funding, and conducting impact assessments.

James Allen, head of Compact Voice, said: “The fact that so many local areas continue to uphold the principles of the Compact is reassuring, and should provide sufficient motivation to encourage others that it is possible. The Department for Communities and Local Government should look at how they are enforcing their Best Value Guidance, as many areas are seemingly not being compelled to follow it.”