The state of the sector: the continued impact of the economic downturn and public sector spending cuts on voluntary and community organisations in Newcastle upon Tyne

Document type
Corporate author(s)
Newcastle Council for Voluntary Service
Newcastle Council for Voluntary Service
Date of publication
1 January 2011
Community Development and Regeneration, Social Policy
Social welfare
Material type

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The aim of this report is to present the results from a survey conducted by Newcastle Council for Voluntary Service and to look at the impact of the economic downturn and public spending cuts on the voluntary and community sector in Newcastle upon Tyne. When asked about where funding came from last year 85% of respondents relied on the public sector for some or all of their income, 72% of respondents received grants from charitable foundations and trusts, and 52% of respondents accessed money through fundraising and donations. Organisations were asked to estimate the length of time they would be able to continue to provide their services, at the current level, after March 2011. Only 15 of the 46 organisations (33%) had sufficient funds to provide their services for more than a year. Respondents had a clear understanding of some of the challenges ahead in the coming year; the challenges were varied and included contracting changes, loss of grant aid, policy shifts, the health service restructuring and the general finances of the public sector. A genuine concern arising from the survey is that of reduced resources whilst facing an increased demand for services. Among the recommendations of the report is that many voluntary and community organisations deliver statutory services and essential services; much of this work is preventative and such projects save public services considerable amounts of money. Therefore, there should be an impact assessment made of the implications of any cuts to sector funding.

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