The announcement of government spending cuts has prompted widespread concern among charities, with half predicting income falls.

A survey of 100 not-for-profit organisations has found that half expect the government cutbacks to have a negative impact on their income, with one in five predicting falls of more than 10 per cent over the next three years.

Less than 5 per cent of those surveyed by software company Iris predicted that income could rise in the near future.

The government has regularly warned the sector that the current and impending cuts will have a significant impact on the sector, but has asked for charities to engage in dialogue and show patience.