Southampton City Council has protected its £1.9m budget for charities until next year, but is considering suspending future applications for the year 2012/13 and instead renewing existing grants for another year.

The move follows a reported 20 per cent reduction in funding for the voluntary sector in the year 2011/12.

According to False Economy, a campaign group which this week produced an exhaustive list on local authority cuts to the charity sector, Southampton City Council made cuts to the charity sector totalling £368,640 in 2011/12. However two charities received small funding increases - Southampton Rape Crisis and Southampton Action for Access.

Southampton City Council has now committed to ring-fencing its voluntary sector budget till 2013. The council is also consulting on whether it should suspend future applications from voluntary organisations for the year 2012/13 and renew existing grants for another year.

Councillor Peter Baillie, cabinet member for housing, said: “There is less money than ever before to support the excellent work that our voluntary organisations do and the money we do give must be spent prudently.

“However, even in these difficult economic times the council is committed to supporting the work of voluntary organisations in the best way it can and with the limited resources it has, and I would encourage as many as possible to come forward – have a voice and become engaged in the consultation process.”