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Cuts will hit front-line services, says Acevo; we need to know how big society will work, argues Navca.

The Budget will place a huge burden on charities and voluntary organisations, third sector umbrella bodies have warned.

They were reacting to the principal measures announced by the Chancellor, George Osborne, which include a 25 per cent cut in the budgets of government departments other than health and international development over the next four years.

They were also concerned about the effects of the rise in VAT from 17.5 to 20 per cent and a likely rise in demand for charities’ services as access to welfare benefits are tightened and unemployment rises.

Stephen Bubb, head of chief executives body Acevo, said the scale of the challenge facing charities as a result of the Budget was enormous.

"The spending cuts outlined today will impact on front-line services," he said. "The vulnerable will likely receive less support and charities will be asked to do more, and will have to do so at a time that their cost base is rising due to the VAT rise."

It was vital that the government talked to the sector about the way forward, he said.

"It is crucial that the state works with us in genuine partnership, that we are fully engaged in the spending review and that it is not a PR process, as some Conservatives have suggested," he said.

Neil Cleeveley, director of policy and communications at local umbrella body Navca, said: "This is further evidence of just how tough public spending cuts are going to be. When the state retreats from providing services, the voluntary and community sector fills the gap.

"That’s why we need to know the government’s plans for the big society. We need to know that local charities and community groups will get the support they need to help communities through these hard times."

The National Council for Voluntary Organisations published a summary on its website of the implications of the Budget for the sector, but declined to comment further.