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Government cuts: voluntary sector hit hardest with £1.3 billion annual loss, says National Council for Voluntary Organisations

Volunteers' body finds massive hole in charity funding as Con-Dem austerity bites

The voluntary sector is bearing more than its fair share of public spending cuts, losing more than £1.3 billion annually, it was claimed yesterday.

A report by the National Council for Voluntary Organisations (NCVO) found that government income fell by nearly 9 per cent in real terms over a two-year period.

The data, which was drawn from a number of charities’ annual accounts between 2010/11 and 2011/12, suggests that the government has dumped spending with charities at a faster rate than elsewhere, the council said.

NCVO chief executive Sir Stuart Etherington said: “Given the government’s deficit-reduction priority, it was inevitable that charities would feel the impact of public spending cuts.

"But these figures show that charities bore more than their fair share.”

A Cabinet Office spokeswoman added: “We recognise that it is a difficult environment for charities. We have long said that the sector cannot be immune from cuts and we are providing a comprehensive support package to help the sector to adapt to challenging times.”

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