The Royal National Institute of the Blind looks set to make budget cuts of £5m because its assets have been hit by the recent falls in the stock market.

The charity this week confirmed that this year's stock market price falls have led to a 15 per cent slump in income from legacies in the first six months of the year.

Last year, these accounted for 36.4 per cent of its revenue.

Trustees will meet next month to decide where to make the cuts but the charity said it would try to preserve services for the blind.

A spokesperson for the National Council of Voluntary Organisations said that there was no evidence that the fall in share prices would seriously impact on charities in the longer term.