Charity leaders have warned against the cuts which could signal disaster for many charities struggling to survive. The NCVO is set to publish a report on state funding of the sector which will reveal that those charities earning less than £1m per year are most dependent on the state for contracts. Indeed, charity spend is regional, with the North East, East Midlands and Wales most reliant on state contracts.

If the government were to slash spending, 25,000 groups could see 3/4 of their income disappear.

We say: Recession or no recession, this is a relatively rich country and the state can afford to give to charity. Spending cuts from the voluntary sector would have a severe knock-on effect that would damage many of the government’s own initiatives, which rely on the productivity and the generosity of the charities themselves, with people working around the clock, often unpaid. Make cuts now, and pay later. This is just plain stupid.