A survey of 173 local voluntary and community sector organisations showed that 68 per cent had experienced cuts in the past 12 months, with 40 per cent giving "efficiency savings" as the biggest cause.
The findings are analysed in Frontline Hopscotch, a report by Sheffield Hallam University. Just over half of those surveyed said that services previously delivered by the voluntary and community sector had been taken in-house by local authorities in the past 12 months.
Meanwhile, 40 per cent of organisations said they had been discouraged from bidding for local authority contracts because of the bureaucracy involved in competitive tenders. Kevin Curley, Navca chief executive, said the findings painted a "disappointing picture".
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