The Charity Commission’s budget will be cut by £1m in 2015/16.
The commission said it would lose slightly more than 6 per cent from its budget when inflation is taken into account as a result of the 2013 spending round, which sets out government spending in 2015/16 and was announced today by George Osborne, the Chancellor of the Exchequer.
The regulator’s budget will fall from £21.4m in 2014/15 to £20.4m the following year. It received £29.3m in 2010/11.
A statement from the commission said there would be further job cuts as a result of the reduction, but the regulator was "seeking to minimise the impact of any changes on our front-line activity".
It did not put any figures on how many jobs could be lost but it is understood that about 20 jobs will be at risk as a result of the cuts.
The regulator has already lost 120 staff since the 2010 spending review.
"We will be evaluating the impact of this settlement on our strategic plans over the coming weeks, which will involve looking at the future shape of the organisation," the statement from the commission said.
The commission statement said the fact that it had "succeeded in securing a lower than anticipated reduction demonstrates that they have accepted some of our concerns".
Osborne also said that the Cabinet Office, which houses the Office for Civil Society, would have its budget reduced by 10 per cent.