A spokesperson from the Department for Communities and Local Government said:
The Government has provided a fair and progressive funding settlement for councils that protect front-line services and shield the most vulnerable.
Councils have challenging decisions to make around how they prioritise spending but the Government is clear that councils must resist any temptation to pass on disproportionate savings to the voluntary sector.
In their approach to budget setting, the best councils are showing that they understand that a strong, thriving voluntary sector is more important now than ever and could be the key to providing high quality, good value services to their residents. But this is not the case everywhere. Councils that are failing to recognise the importance of the sector are being short sighted in their approach.
Councils will only see an average 4.4 per cent reduction in revenue spending power and the grant has been adjusted so none will now face more than an 8.8 per cent fall.
Many councils are actively working to protect voluntary organisations. Reading has boosted funding to voluntary organisations by more than £220,000 this year to over £7 million.
Hackney has given £2.5m extra funding to the VCS. Thurrock and Wolverhampton have announced that they will protect all VCS funding until 2012.
The Government has created a Transition Fund (£100m from the Office for Civil Society), to support voluntary groups next year.