The Transition Fund must be extended for two more years, while local councils should each be forced to produce a ‘Big Society Plan’ to show how local charities will be protected, Navca chief executive Kevin Curley has argued.

Responding to yesterday’s report from campaigning group False Economy, Curley said it underestimates the scale of funding cuts, and argued that cuts in statutory funding of all types could be as high as £1.2bn this year.

He said the additional funding is necessary to support local advice, family support and youth services in our most disadvantaged communities, adding: “At the same time, local councils should be required to work with the local voluntary sector, the local NHS, further education and the police to produce a Big Society Plan for every upper tier area. 

“This would need to show how support for local charities, community groups and volunteering will be sustained.”

He added: “Ever since the Urban Aid Programme of the late 60s every government has used its powers and resources to support the growth of local charities and community action, encouraging partnership work with all parts of the local state. 

“Urgent action is needed now to protect the advances of the last 40 years from the worst consequences of rapid deficit reduction.”