Local infrastructure organisations (LIO) may have to slash the services they offer third sector groups if funding continues to fall, the National Association for Voluntary and Community Action has warned.
NAVCA, the national voice of LIOs, revealed that its 344 members faced a 14% cut in annual income in 2007 compared with 2006.
A LIO is set up and run by local groups as a voluntary organisation to promote and develop community action.
They work with 164,000 grassroot voluntary and community groups in 98% of local authority areas in England.
Funding comes from local authorities, primary care trusts and the learning and skills council. But Kevin Curley, NAVCA chief executive, said he had “major concerns” about the decline in income.
“It will be local groups that will suffer. In this increasingly competitive environment with an increased emphasis on public service delivery, the need for effective support is greater than ever,” said Curley.