Cuts Watch #183: The Big Society keeps getting smaller
More cuts have been announced to the voluntary sector. The Office for Civil Society has cut its budget for its strategic partners (which include NCVO, CSV and Volunteering England) from £12.2m to £7.5m, and is proposing to cut funding completely to 27 of the 42 organisations it currently supports.
New rules will also mean that no organisation will recieve more than 25 per cent of its funding from Government, and that no partner will recieve more than £500,000 a year. This will hit many partners hard. A full list of partner organisations that received funding during 2008/09 can be seen here. It includes Action with Communities in Rural England, Church Urban Fund, Consortium of Lesbian Gay Bisexual and Transgendered Voluntary and Community Organisations, Foyer Federation, Women’s Resource Centre, British Youth Council, TimeBank and the Citizenship Foundation.
The precarious state of many voluntary sector organisations has also become clearer as new NCVO research shows that one in three charities have no reserves, meaning that cuts are likely to lead to widespread charity closures. Playgroups and nurseries are in the most precarious position – holding reserves that are only worth an average of 1.4 months of expenditure.